Answer:
Depends on how the funds raised for that project are going to be spent.
Explanation:
The cost of financing a project solely either through equity or debt is referred to as the cost of capital.
It can also be defined as the rate of return that a sum of money would have earned if invested into another business with equal risk.
It is useful in setting budget while evaluating investment opportunities.
One major factor in determining the cost of capital is the related risks to an investment . The higher the risk , the higher the cost of capital. That means that how the raised funds for the project are going to be spent is a major determinant of the cost of capital.
