Describe the relationship between risk and return and how you would measure for both in your project. What other factors play into capital budgeting decisions?

Capital Investment

Introduce your project with a reflection on the importance of selecting the right projects in which to invest capital. Do we always select those projects that have the highest return on investment (ROI)?

Describe the relationship between risk and return and how you would measure for both in your project. What other factors play into capital budgeting decisions?

Explain how you would calculate the weighted average cost of capital (WACC) and its components for your project.