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capital budgeting decisions

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Capital budgeting and investment planning are some key financial management decisions that firms routinely have to make, especially in a low interest rate climate such as the one we are currently in. Why do you think interest rates matter? What's the real reason, besides money being cheaper when rates are lower?

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Interest rate matters because it is directly related to the cost of capital used for capital budgeting projects of the organization. If the interest rates will be higher, ...

Solution Summary

Capital budgeting and investment planning are some key financial management decisions that firms routinely have to make, especially in a low interest rate climate such as the one we are currently in. Why do you think interest rates matter? What's the real reason, besides money being cheaper when rates are lower?

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