increasing cost of capital

wolfe
wolfe Registered Posts: 121 ? ? ?
hi
is it right to say that if the cost of capital is increased by 2% it would make the investment less viable COZ MORE INTEREST COST HAS TO BE PAID???
thaks in advance

Comments

  • CJC77
    CJC77 Registered Posts: 62 ? ? ?
    wolfe wrote: »
    hi
    is it right to say that if the cost of capital is increased by 2% it would make the investment less viable COZ MORE INTEREST COST HAS TO BE PAID???
    thaks in advance

    Can't comment on the last part - I just know that increasing the discount % rate will always make something less viable as it reduces the Net Present Value
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