Cost of Capital Tool

  • Go to Article
  • Subscribe to HBR
  • Having Trouble?
  • Give Feedback

Harvard Business Review

What is Your Cost of Capital?

The line represents the Net Present Value (NPV) of a given set of cash flows based on the assumed discount rate. The discount rate is determined by a set of assumptions that vary widely in practice. This tool enables you to evaluate the impact of changes in cost of capital assumptions on a project’s NPV.

Developed in partnership with Forio Online Simulations