The cost of capital for projects: conceptual and practical issues

Abstract

Examines how individual projects will affect the organization’s stated desire to “add value” by its operations, particularly how the market will judge each project on this basis. Considers rates of return, risk and cost of capital. Provides practical guidance for managers seeking to establish the cost of capital for a number of different types of project. Also provides special guidelines useful in the analysis of cost reduction projects.

Citation

Anderson, R.C., Byers, S.S. and Groth, J.C. (2000), "The cost of capital for projects: conceptual and practical issues", Management Decision, Vol. 38 No. 6, pp. 384-393. https://doi.org/10.1108/00251740010344568