Discuss the factors that determine the appropriate discount


1. Discuss the factors that determine the appropriate discount rate to use when calculating the net present value.

2. What simplifying assumptions were made in the chapter regarding calculation of net present value?

3. What are some examples of potential intangible benefits of investment proposals? Why do these intangible benefits complicate the capital budgeting evaluation process? What might happen if intangible benefits are ignored in a capital budgeting decision?

 

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Finance Basics: Discuss the factors that determine the appropriate discount
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