Determine the discount rate used in npv for the investment

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Investments require a large amount of initial capital expenditure and involves many uncertainties. This requires firms to carefully consider and critically evaluate the investment opportunities using many techniques including the net present value.

Problem 1: Critically discuss the factors must be taken into consideration in determining the discount rate used in NPV for the investment decisions. Provide examples in your answer.

Reference no: EM132699816

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