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- Write the capitalized-cost equation?. How are the component costs combined to forma weighted average cost of capital (WACC),and why is it necessary to use the WACC in capitalbudgeting?Capitalizing a cost means to record the cost into a(n) a. contributed capital. Ob. asset. С. expenditure. d. income statement. A Moving to the next question prevents changes to this answer.
- Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d. Replacement CostAn investment is the use of money or capital for income or _______. expenses profit value present value intrestIn the case of the net present value technique, explain how the cost of capital is used as a screening tool.
- The user cost of capital does NOT depend on a. The real interest rate b. The unit price of capital c. The depreciation rate s. The marginal product of capitalWhat are some of the factors that inform the cost of capital?The weighted average cost of capital is used to determine whether or not a project should be done. true false
