/
Questions/
Assignment/
You’ve got an idea for a new product line, a way to revamp your inventory management system: Finance Assignment, NU, UK
Looking For Plagiarism Free Answers For Your UK College/ University Assignments.
BUY NOWYou’ve got an idea for a new product line, a way to revamp your inventory management system: Finance Assignment, NU, UK
University | Newcastle University (NU) |
---|---|
Subject | Finance |
You’ve got an idea for a new product line, a way to revamp your inventory management system, or a piece of equipment that will make your work easier. But before you spend the company’s hard-earned money, you’ve got to prove to your company’s leaders that it’s worth the investment.
You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. But are you sure you know exactly what that is? And how your company uses it
What is the cost of capital?
“The cost of capital is simply the return expected by those who provide capital for the business, ” says Knight. There are two groups of people who may put up the capital needed to run a business: investors who purchase stock and debt holders who buy bonds or issues loans to the company. Any investment a company makes has to earn enough money that investors get the return they expect and debt holders can be repaid.
You may be wondering if this is the same as the discount rate and the terms are sometimes used interchangeably, explains Knight. Though there is typically a distinction.
“At most companies, the cost of capital is a mechanical calculation done by the finance people. Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment, ” he says.
Buy Answer of This Assessment & Raise Your Grades
Get help by expert
Seeking Online Assignment Assistance for Your Newcastle University Finance Assignment? Look No Further! At Diploma Assignment Help UK, we offer specialized University Assignment Help services tailored to Newcastle University’s finance curriculum. Our expert team ensures top-notch quality and timely delivery, ensuring your academic success.
Recent solved questions
- CMI unit 701 strategic leadership, Essay, UK
- CIH Level 4: H409 - Research Skills for Housing, assignment, UK
- You are working for an energy company where you were asked to design a solution to promote sustainable transportation: Finding and Using Information, Assignment, OU, UK
- UNIT CMI 706: Designed to enable leaders to evidence their understanding of the scope, complexity and role of Finance within an organisational context: Finance for Strategic Leaders, Report, UK
- Managing a Professional Engineering Project (MPEP), Tutor Marked Assignment 1 (TMA) Network Analysis, TU, UK
- Unit 3: You are advising the owner of a local business that runs coach trips: Financial and Management Accounting Techniques for Managers, Assignment, UOS, UK
- UNIT CMI 702: Evidence Booklet: Understand the principles for leading and developing people: Leading and Developing People to Optimise Performance, Assignment, UK
- Level 4: Understanding the management role to improve management performance: Principles of leadership and management, Assignment, ILM, UK
- 7HR03: Your knowledge and understanding of the material covered in this specialist unit will be assessed: Strategic reward management, Assignment, CIPD Level 7, UK
- UNIT CMI 305 Assessment Booklet: The aim of this assessment booklet is to enable managers to evidence their understanding of how to use their knowledg: Building Stakeholder Relationships Using Effective Communication, Assignment, UK