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What Is Difference Between Cost Of Capital And Cost Of Project?
Posted by Prem in Posted Questions on 10 8th, 2009 | one response
These both are used in feasibility preparation.
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One Response to “What Is Difference Between Cost Of Capital And Cost Of Project?”
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I think cost of project, is just all the costs added together.
Cost of capital is time adjusted cost. Spending a dollar 5 years in the future has the same capital cost as spending 50 cents now (depending on what interest rate you use for the time value of capital).