The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:
A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NP
D) future value (FV).
E) Currency Rate Analysis (CRA).

Question

Quizplus · Accepted Answer

The description given in the question matches with the net present value (NPV) analysis technique that calculates the present value of future cash flows using a discount rate derived from the company's cost of capital. The other options are not relevant to the given description.

The Analysis Technique That Uses a Discount Rate Determined from the Company's