The formula for calculating the discount rate to use in net present value (NPV) calculations is as follows: PV = 1+ (1+r)" Where 'n' represents: OA. The number of years you are investing OB. The cost of capital - stated as a percentage OC. The initial investment OD. The cost of capital - stated as a decimal
The formula for calculating the discount rate to use in net present value (NPV) calculations is as follows: PV = 1+ (1+r)" Where 'n' represents: OA. The number of years you are investing OB. The cost of capital - stated as a percentage OC. The initial investment OD. The cost of capital - stated as a decimal
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The formula for calculating the discount rate to use in net present value (NPV) calculations is as follows:
PV = 1 + (1+r)"
Where 'n' represents:
OA. The number of years you are investing
OB. The cost of capital - stated as a percentage
OC. The initial investment
OD. The cost of capital - stated as a decimal
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