What is the appropriate discount rate

Reference no: EM13289538

Suppose Apple has excess cash invested in US Treasury Bonds earning 3%. They are considering acquiring a web-based telecommunications company, which is similar to Apple's existing business, for $20 billion. Apple's WACC is 12%. What is the appropriate discount rate to use in evaluating the acquisition? Explain clearly and concisely why this is the appropriate discount rate.

Reference no: EM13289538

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