Question: Explain the difference between the terms interest rate and discount rate used in the economic analysis for determining a profitability of investment in a capital
Explain the difference between the terms interest rate and discount rate used in the economic analysis for determining a profitability of investment in a capital project.
Step by Step Solution
3.35 Rating (158 Votes )
There are 3 Steps involved in it
The terms interest rate and discount rate are often used interchangeably but they have distinct meanings in economic analysis particularly when evalua... View full answer
Get step-by-step solutions from verified subject matter experts
