The ____ determines the present value of the projected cash flows and is, in reality, the expected rate of return for the investor.
A)forecast period
B)discount rate
C)terminal value
D)book value
E)stable earnings history

Question

The ____ determines the present value of the projected cash flows and is, in reality, the expected rate of return for the investor.
A)forecast period
B)discount rate
C)terminal value
D)book value
E)stable earnings history ​

Quizplus · Accepted Answer

The discount rate is used to determine the present value of projected cash flows, representing the expected rate of return for the investor. It reflects the time value of money, accounting for the risk and potential alternative returns from other investments.

The ____ Determines the Present Value of the Projected Cash