It follows that cost of capital is determined by the yield an investor requires to be...
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It follows that cost of capital is determined by the yield an investor requires to be compensated for time and risk. • In this video, to simplify the exercise and focus on the mechanics of building a model, we assume a cost of capital of 10%. This cost of capital is applied to the projected cash flows of a boat (asset). . This beat V Disclaimer: A Simple Model does not advise buying a boat to fund retirement. This is a terrible plan. (see depreciation) To determine the present value ("PV") of the projected cash flows the concept of a discount factor is introduced: It follows that cost of capital is determined by the yield an investor requires to be compensated for time and risk. • In this video, to simplify the exercise and focus on the mechanics of building a model, we assume a cost of capital of 10%. This cost of capital is applied to the projected cash flows of a boat (asset). . This beat V Disclaimer: A Simple Model does not advise buying a boat to fund retirement. This is a terrible plan. (see depreciation) To determine the present value ("PV") of the projected cash flows the concept of a discount factor is introduced:
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Related Book For
Financial Accounting
ISBN: 978-1305088436
14th edition
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
Posted Date:
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