Question
DETERMINING THE DISCOUNT RATE We frequently need to determine what discount rate is implicit in an investment. There are only four parts to this equation:
DETERMINING THE DISCOUNT RATE
We frequently need to determine what discount rate is implicit in an investment.
There are only four parts to this equation: the present value (PV), the future value (FVt), the discount rate (r), and the life of the investment (t). Given any three of these, we can always find the fourth.
Can someone explain to me what the discount rate is? why its important? how i find it? this would be greatly appreciated.
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
