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    Capital budgeting for non profit projects

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    What major problems can you foresee in applying capital budgeting techniques to not-for-profit organizational projects?

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    https://brainmass.com/economics/personal-finance-savings/capital-budgeting-non-profit-projects-80555

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    There are peculiar factors which affect application of capital budgeting techniques to not-for-profit organizational projects and causes problems. For example, there are differences in the WACC formula for non-profit organizations. Since not-for-profit firms pay no taxes, there are no tax effects associated with debt financing. Second, a not-for-profit firm's cost of equity, or cost of fund capital, is much more ...

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    The major problems can you foresee in applying capital budgeting techniques to not-for-profit organizational projects are examined.

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