Respuesta :
In a net-present-value analysis, the discount rate is often called the hurdle rate.
What is discount rate in NPV analysis?
- It's both the predicted charge of go back for traders or the price of borrowing cash.
- The business enterprise will compute NPV the usage of a reduction charge of 12% if shareholders count on a go back of that amount. The business enterprise may also use 4% as the cut price charge if it pays 4% hobby on its debt.
What are NPV IRR and payback?
- Payback period (PB), inner charge of go back (IRR), and internet gift value (NPV) are the 3 strategies of venture choice which are maximum regularly used (NPV).
- How lengthy it'd take a enterprise to generate sufficient coins waft to recoup the preliminary funding is decided with the aid of using the payback period.
What is the cut price charge?
The minimal hobby charge set with the aid of using the Federal Reserve for lending cash to business banks.
Learn more about NPV analysis
brainly.com/question/14293513
#SPJ4
