The cost of capital and the discount rate work hand in hand to assess whether a prospective investment or project will be profitable. The cost of capital refers to the minimum rate of return needed from a project or investment to make it worthwhile, whereas the discount rate is used to ...
Answer (D) is correct . The NPV is the excess of the present values of the estimated cash inflows over the net cost of the investment. The discount rate used is sometimes the cost of capital or other hurdle rate designated by management. This rate is also called the required rate of ret...
D) Given an assessment of an index's future cash flows, we can estimate the expected return of the market by solving for the discount rate that is consistent with the current level of the index. Answer: A Diff: 3 Section: Final Thoughts on Using the CAPM Skill: Conceptual 10) Assu...
更多“The rate of return, discount rate, hurdle rate, and opportunity cost of capital all have the same me…”相关的问题 第1题 The rate of return is also called the() A.discount rate only B.discount rate and hurdle rate only C.discount rate, hurdle rate, and opportunity cost of ...
E、discount rate that causes the profitability index for a project to equal zero. 正确答案: D 33Which one of the following represents the most liquid asset? A、$100 account receivable that is discounted and collected for $96 today B、$100 of inventory which is sold today on credit for ...
First Tier: Called the primary credit program, this tier provides capital to financially sound banks with good credit records. This primary credit discount rate is usually set above existing marketinterest rateswhich may be available from other banks or other sources of similar short-term debt. ...
<C>项.work is begun on the job <D>项.work is completed on the job [-标准答案-]:D 8.The interest rate specified in the bond indenture is called the () <A>项.discount rate <B>项.contract rate <C>项.market rate <D>项.effective rate [-标准答案-]:B 9.The inventory method that...
Answer: B Ques Status: Previous Edition 11) A banks commitment to provide a firm with loans up to pre-specified limit at an interest rate that is tied to a market interest rate is called A) an adjustable gap loan. B) an adjustable portfolio loan. C) loan commitment. D) pre-credit ...
Answer: the time value of capital, refers to funds in the process of production and circulation, with the passage of time can produce value-added, the value-added part is called the time value of money. The relationship between the 5, the nominal interest rate and real interest rate? A:...
Define discount rate. discount rate synonyms, discount rate pronunciation, discount rate translation, English dictionary definition of discount rate. n. 1. The interest rate charged by a central bank on loans to its member banks. A change in the discount