|
By adjusting the discount rate, you can account for how "risky" a project is.
Go for it! The investment is expected to generate more value than the cost of the capital. It’s a "profitable" move. npv formula
If you’ve ever had to decide whether a project is worth the sweat or if an investment is actually going to pay off, you’ve likely run into . By adjusting the discount rate, you can account
By adjusting the discount rate, you can account for how "risky" a project is.
Go for it! The investment is expected to generate more value than the cost of the capital. It’s a "profitable" move.
If you’ve ever had to decide whether a project is worth the sweat or if an investment is actually going to pay off, you’ve likely run into .