Discount rate to apply to forecasted cash flows

Assignment Help Financial Management

Reference no: EM131066542

Discuss the key factors executives consider when choosing a discount rate to apply to forecasted cash flows. Compare and contrast other factors for-profit and not-for-profit executives may consider in their decisions about what projects to finance. (suggested length: 100-200 words.)

Reference no: EM131066542

Questions Cloud

Pay more for environmentally friendly products : Forty-three percent of adults would pay more for environmentally friendly products. You randomly select 12 adults. Find the probability that the number of adults who would pay more for environmentally friendly products is

What was the arithmetic average return on stock : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 12 percent, –9 percent, 20 percent, 17 percent, and 10 percent. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period..

Describe the business model : Describe the "business model" in terms of revenues, profits, and cash flows.(bab2) Conduct a ratio analysis of Coral Systems' and Spatial Technology past income statements and balance sheets for year of 1994 and 1995.

What is the rate of return on each bond : One bond has a coupon rate of 8.2%, another a coupon rate of 9.6%. Both bonds pay interest annually, have 13-year maturities, and sell at a yield to maturity of 8.5%. a. If their yields to maturity next year are still 8.5%, what is the rate of return..

Discount rate to apply to forecasted cash flows : Discuss the key factors executives consider when choosing a discount rate to apply to forecasted cash flows. Compare and contrast other factors for-profit and not-for-profit executives may consider in their decisions about what projects to finance.

Formulate a linear programming model for problem : MEM 506 - Formulate a linear programming model for problem and If Mar-gine were able to increase its production capacity in January, February. and March from 30 to 40 engines, what would the effect be on the optimal solution?

How does a teacher display fairness in the classroom : Summarize the cognitive, linguistic, social and emotional development of individuals with the selected disability and three instructional approaches that respond to the needs of individuals with the selected disability.

Understanding of the risks involved : On Tuesday, the investor determines that due to a better understanding of the risks involved, he would have liked a yield 1⁄2 percent higher than what was implied by his Monday investment. How much market value loss does the investor calculate as ..

Determine amount of each equal semi-annual cash flow : A series of quarterly cash flows began with the first cash flow on April 1,1990 and ends with the last cash flow on January 1,2000. The first quarterly cash flow is equal to $24,000. Each successive cash flow increases $850. Determine the amount of e..

User Account

All Pages