The Cost of Capital

This chapter contains sections titled:

• What is the Cost of Capital?

• Net Present Value

• Alternative Methods of Project Evaluation

• Risk and Return

• Exercise 3.1.Risk and Diversification

• Exercise 3.2.Risk Aversion

• Exercise 3.3.The Capital Asset Pricing Model

• Exercise 3.4.Certainty Equivalent Discount Rates

• Exercise 3.5.Calculating the Internal Rate of Return