A practical approach for entrepreneurs and investors Entrepreneurial Finance provides readers with the fundamental knowledge to finance, start, grow, and value new ventures, without the complex finance terms and calculations. This comprehensive yet practical approach incorporates a global perspective that appeals to entrepreneurs, investors, and students with diverse backgrounds, knowledge, and experience. From Facebook to Camera+, Gary Gibbons, Robert D. Hisrich, and Carlos M. DaSilva use real-world examples and their professional experiences to bring concepts to life. This text is one of the most readable books in the market without compromising high quality content and resources.
Chapter 7: Cost of Capital and Capital Budgeting
Cost of Capital and Capital Budgeting
- To understand the cost of capital
- To understand basic capital budgeting
Case: Mill Pro, Inc.
As a recent graduate of a top 100 business school, Robyn Hunt was the proud possessor of a newly minted MBA. That's not all that had changed; while attending school, she had met the man of her dreams, Tom Dallin. She was now Mrs. Thomas Dallin, MBA. Tom was an engineer by training, and he was running a company his father had started back in the 1940s. The company, Mill Pro, Inc. (Mill Pro), provided custom-made parts to major firms in the [Page 114]aerospace industry. Mill Pro was a successful firm, but like any other firm in its position, it ...