Question: What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line?

What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line? Is the opportunity rate a single number that is used in all situations?

Step by Step Solution

3.37 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The opportunity cost rate is the rate of interest one could earn on an alternative investment ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

9-B-F-F-M (23).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!