Question
A corporate donor promises to contribute $1 million to an NFP organization, payable in installments over the next 10 years. If the NFP records the
A corporate donor promises to contribute $1 million to an NFP organization, payable in installments over the next 10 years. If the NFP records the promise at its present value, what is the most appropriate discount rate?
| A. | Rate at which the NFP can obtain loans | |
| B. | Treasury bond rate | |
| C. | Current borrowing rate for low-risk individuals | |
| D. | Market rate on the NFP's investments |
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The Process Auditing And Techniques Guide
Authors: J.P. Russell
2nd Edition
087389782X, 978-0873897822
