Compare the process to create a business plan for a startup company and the process of creating a capital budget proposal
Please answer each of the following question in detail. Provide insightful answers and descriptions.
After you have answered ALL the questions, read and comment on at least three more posts from other students.
Watch your spelling!
What are the general categories of capital budget scenarios? Please describe the overall decision-making context for each.
Compare the process to create a business plan for a startup company and the process of creating a capital budget proposal. Please explain three similarities and differences between the two.
Define what is WACC. In addition, explain how changes in the economy that make investors more risk averse can affect WACC (think cost of debt and cost of equity).
If a company always uses retained earnings to fund capital equipment, is the cost of capital irrelevant? Explain your answer.