Venture investors generally use which of the following target rate ranges to discount the projected cash flows of ventures in the startup stage of their life cycles:

Question

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Venture investors generally use a higher target rate range to discount the projected cash flows of ventures in the startup stage of their life cycles because of the high risk involved. The range of 30%-50% is a common target rate range used by venture investors in such cases. This allows them to compensate for the higher risk they take on when investing in early-stage startups.

Venture Investors Generally Use Which of the Following Target Rate