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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)

Management Decision

ISSN: 0025-1747

Publication date: 1 August 2000

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

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MCB UP Ltd

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