Cost of capital
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Cost of capital is the amount forgone by holding a unit of capital for one period, including interest, depreciation, and the gain or loss from the change in the price of capital.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Cost of capital. The amount forgone by holding a unit of capital for one period, including interest, depreciation, and the gain or loss from the change in the price of capital.
