The rate is given but in real life how do we determine what


If we use a 4% rate, the value of the 30 payments is $129.5 million, so we should take the 30 payments. If we use a 5% rate to discount the cash flows, the value of the 30 payments is $116.2 million, so we should take the one-time payment. The rate is given, but in real life, how do we determine what rate to use?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The rate is given but in real life how do we determine what
Reference No:- TGS02612737

Expected delivery within 24 Hours