Why should the risk-free rate be used for discounting cash flows to their present value when evaluating

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Why should the risk-free rate be used for discounting cash flows to their present value when evaluating the risk of capital investments?

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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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Question Posted: Dec 07, 2015 05:46 AM

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Why should the risk-free rate be used for discounting cash flows to their present value when evaluating

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The riskfree rate is used to discount future cash flow...View the full answer

Fundamentals Of Financial Management

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