Determine a discount rate for npv purposes

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Question: There are multiple budgets management creates to help plan for the future. These range from DM Budgets, DL Budgets, Production Budgets, and more. There is a specific order in which budgets are prepared. REQUIRED: What budget do you prepare first and why? lem #4 (1 Mark) When computing Net Present Values (NPV), we need to use a discount rate. REQUIRED: How does a company determine a discount rate for NPV purposes? Why do they use this amount?

Reference no: EM133346853

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