Looking back at Regardless of Your Major Understanding the Role of the Cost of Capital on page 446, what should be the opportunity cost of funds in valuing the cash flows from the ownership of a McDonald 's franchise How would you respond to your friend after having read the entire chapter Remember...

The key thing to think about is that the risk of the investment opportunity not the source of financ ...

Looking back at Regardless of Your Major: Understanding the Role of the Cost of Capital on page

Question:

Looking back at Regardless of Your Major: Understanding the Role of the on page 446, what should be the of funds in valuing the cash flows from the ownership of a McDonald's franchise? How would you respond to your friend after having read the entire chapter? Remember that your friend is a complete novice when it comes to finance, so try to be very clear in your guidance.
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...