NPV calculations used a 9.0% discount rate for cash flows related to the store cash flows and
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NPV calculations used a 9.0% discount rate for cash flows related to the store cash flows and a 4.0% discount rate for credit-card cash flows. Why does the company use different hurdle rates for the store and the credit cards? What process could you use to estimate these discount rates to see if they are reasonable?
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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