Capital Budgeting Discussion

Discuss the following topics on the Group Discussion Board and write a group paper between 700–850 words. Assign topics to be written by each group member and compile it all together before submitting your group paper:

The pros and cons of each of the 3 popular methods of capital budgeting
Your recommendation as to which method is most effective and why
A company's cost of capital and how it is calculated
What the marginal cost of capital is and how it differs from the weighted average cost of capital
How market rates and the company's perceived market risk impact its cost of capital, which will include the following:
The marginal cost of debt and the marginal cost of equity
The principles of the capital asset pricing model (CAPM