Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In the net present value (NPV) approach to investment appraisal the discount rate is NOT intended to take into account: Returns that could be earned
In the net present value (NPV) approach to investment appraisal the discount rate is NOT intended to take into account:
- Returns that could be earned if the money was invested in an alternative project
- The decision makers relative preference for receiving money now rather than in a year's time
- The lifetime of the investment
- Interest that could be earned if the money was invested in a bank account instead of the project under consideration
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started