What is 'cost of capital' in SAP MA-SMOPS - SmartOps?

cost of capital - Overview

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: The cost of maintaining one dollar of capital invested for a specified period, including the consideration of alternative capital investments and common interest rates.

cost of capital - Details

• 
  Key Concepts: 
  Cost of capital is a term used to describe the cost of borrowing money or the return on an investment. It is a key factor in determining the profitability of a business. In SAP MA-SMOPS SmartOps, cost of capital is used to calculate the cost of capital for a given project or investment. 
  
  How to use it: 
  In SAP MA-SMOPS SmartOps, cost of capital can be calculated by entering the required information such as the expected rate of return, the risk-free rate, and the expected inflation rate. The system will then calculate the cost of capital for the given project or investment. 
  
  Tips & Tricks: 
  When calculating cost of capital in SAP MA-SMOPS SmartOps, it is important to consider all relevant factors such as the expected rate of return, the risk-free rate, and the expected inflation rate. Additionally, it is important to consider any additional costs associated with borrowing money or investing in a project. 
  
  Related Information: 
  For more information on cost of capital and how it is used in SAP MA-SMOPS SmartOps, please refer to the official SAP documentation. Additionally, there are many online resources available that provide further information on cost of capital and its use in SAP MA-SMOPS SmartOps.