How sensitive is the value of IWPI-Spain to the assumed discount rate of 11.1%? What happens to

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How sensitive is the value of IWPI-Spain to the assumed discount rate of 11.1%? What happens to the value of the project if the rate is 12.1% instead?


Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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