The most common way to determine the discount rate for NPV calculations is by _____.
A)using company policy
B)using the federally published discount rates
C)using the results of ROI calculations
D)calculating current loan interest rates

Question

​The most common way to determine the discount rate for NPV calculations is by _____.
A)using company policy
B)​using the federally published discount rates
C)​using the results of ROI calculations
D)​calculating current loan interest rates

Quizplus · Accepted Answer

The most common way to determine the discount rate for NPV calculations is by using company policy, which often involves the company's weighted average cost of capital (WACC) or a required rate of return set by the company.

​The Most Common Way to Determine the Discount Rate for NPV

The Most Common Way to Determine the Discount Rate for NPV