Question: Why should investor use a discount rate in calculation? Do we know about CF and r in the future? If not, how do we

Why should investor use a discount rate in calculation?
  1.  
  2. Do we know about CF and r in the future? If not, how do we use this formula?
  3.  
 


 


 

Step by Step Solution

3.23 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Investors use a discount rate in calculations to account for the time value of money and to assess t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!