Why use discounted cash flow and cost of capital techniques
Problem
Why we use discounted cash flow and cost of capital techniques and why those approach are superior methods for evaluating the financial impact of a capital invesment project.
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She can earn 8 percent on her investments, and so the appropriate discount rate is 8 percent. What is the present value of her future cash flow?
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Why we use discounted cash flow and cost of capital techniques and why those approach are superior methods for evaluating the financial impact of a capital inve
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