Which of the equations below represents an appropriate discount rate for a project?
A) Discount Rate = Real Rate - Default Premium + Risk Premium of Project
B) Discount Rate = Real Rate + Inflation + Risk Premium of Project
C) Discount Rate = Real Rate + Inflation - Risk Premium of Project
D) Discount Rate = Risk-free Rate + Inflation + Risk Premium of Project
Answer: B
Business
You might also like to view...
Indirect labor is a
(a) non-manufacturing cost (b) raw material cost (c) product cost (d) period cost
Business
The model stock approach and sales–productivity ratio relate to the allocation of selling and merchandise space, not personnel and customer space
Indicate whether the statement is true or false
Business