The required rate of return used to calculate an investment's net present value is related to the firm's

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The required rate of return used to calculate an investment's net present value is related to the firm's cost of capital. It's the minimum return that an investor would expect to receive from the project, taking into account the level of risk involved. The cost of capital is the rate a company must pay on its borrowed funds or equity financing.

The Required Rate of Return Used to Calculate an Investment's