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ACCT.PRINCIPLES (LL)-PACKAGE
14th Edition
ISBN: 9781119707103
Author: Weygandt
Publisher: WILEY
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Question
Chapter 27, Problem 6Q
To determine
NPV (
NPV is the technique of computing net discounted cash flows expected to be earned in the future with respect to the investment made in the present. It is determined after deducting the investment cost from the discounted cash flows. If the NPV turns out to be zero or positive then the proposal should be accepted, otherwise rejected.
: The factors considered in determining the appropriate discount rate.
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What is the basis for the discount rate in a DCF analysis? Describe how this rate mightbe estimated.
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