Cost of Capital Discounted Cash Flow Finance Market Risk 
Harvard Business Review
MARCH 10, 2011
Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. That paragraph isn't my own writing. by James J. McNulty, Tony D. Yeh, William S.
Harvard Business Review
MARCH 10, 2011
Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.
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