The cost of capital for projects: conceptual and practical issues
Ronald C. Anderson
(American University, Washington, DC, USA)
Steven S. Byers
(Idaho State University, Pocatello, Idaho, USA)
John C. Groth
(Texas A&M University, College Station, Texas, USA)
5108
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.
Keywords
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
Publisher
:MCB UP Ltd
Copyright © 2000, MCB UP Limited