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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

Article publication date: 1 August 2000



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.



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.




Copyright © 2000, MCB UP Limited

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