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The discount rate is used in Net Present Value (NPV) analysis to compute the future cash flows in today's dollars. How is that rate typically determined?

The discount rate used in discounted cash flow analysis during capital budgeting is based on
Select Option variable interest rateinternal rate of returnaccrual accounting rate of returncost of capital
and may also include
Select Option a cushion to account for riskmultiplying the discount rate times (1-tax rate) to express as an after-tax returnan estimate for sales price and cost inflation in future years.
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