Writing Essays. by Eleanor Wakefield. There are several vital elements to any successful college essay. This handout. will define those elements and show you how to put them together using an. outline. Following this format will help you keep your thoughts organized and. get your essay underway.
A relevant cost (also called avoidable cost or differential cost) is a cost that differs between alternatives being considered. In order for a cost to be a relevant cost it must be: 1  Future. 2  Cash Flow.  Incremental.
The relevant cost of debt is the after-tax cost of new debt, taking account of the tax deductibility of interest. The after-tax rate is calculated by multiplying the interest rate (or the before-tax cost of debt) times one minus the tax rate.