Cost of Capital Charges and the U.S. Navy: A Framework of Economic Possibilities Executive Summary What happens when a non-profit public organization institutes a cost of capital charge to a unit using those funds? Framing and answering this question is one way to better understand concepts of efficiency and finance in public settings. This paper will examine the potential impact of cost of capital charges within the framework of the U.S. Navy, paying special attention to decision paths that will allow Navy decision-makers to treat this cost as a motivator of efficiency as well as to organizational inertia and other hurdles to realizing the latent benefits of the cost of capital charge. Introduction Within a private organization, the...The end:
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