I AM WORKING IN PVT LTD COMPANY AS AN ACCOUNTANT. CEO HAS ASKED ME TO PREPARE NPV STATEMENT ON A PARTICULAR PROJECT. I HAVE ALL RELATED INFORMATION i.e. AMOUNT, FINANCED BY, RATE OF INTEREST, DURATION EXCEPT DISCOUNT RATE?
27 January 2011
Discount rate is calculated based on cost of capital. Suppose if you are bringing the capital @ 10% , your discounted rate for 1 st year is 1/1+rate( i.e. 10%)
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