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dlinn [17]
2 years ago
10

The interest rate that should be used when evaluating a capital investment project is sometimes called the ______________. i. in

ternal rate of return
Business
1 answer:
OlgaM077 [116]2 years ago
3 0

The interest rate that should be used when evaluating a capital investment project is sometimes called the appropriate discount rate and cost of capital.

The cost of capital refers to the minimum rate of return needed from an investment to make it worthwhile, whereas the discount rate is the rate used to discount the future cash flows from an investment to the present value to determine if an investment will be profitable. Appropriate Discount Rate means, at any time, the real (i.e., not inflation adjusted) weighted average cost of capital (after taxes payable by the concession business).

Cost of Capital = (Risk-Free Rate of Return + Credit Spread) × (1 – Tax Rate)

To know more about cost of capital here

brainly.com/question/16031467

#SPJ4

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Year                                      0            1              2                3

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Read 2 more answers
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