Capital Budgeting Steps 2) Evaluate the risk of the project Well get to this in the next chapter. For now. we'l assume that the risk of the project is the same as the risk of the overall firm If we do this. we can use the firm's cost of capital as the discount rate for capital investment proiects2) Evaluate the risk of the project. • We’ll get to this in the next chapter. • For now, we’ll assume that the risk of the project is the same as the risk of the overall firm. • If we do this, we can use the firm’s cost of capital as the discount rate for capital investment projects. Capital Budgeting Steps