The discount rate is used for calculating the NPV is:
A) Determined by the financial markets
B) Found by the government
C) Found by the CEO
D) None of the above

Question

Quizplus · Accepted Answer

The discount rate is determined by the financial markets based on the current market conditions and the perceived risk of the investment. It represents the opportunity cost of investing in a project or business.

The Discount Rate Is Used for Calculating the NPV Is