Question
Which of the following best describes the discount
factor used in capital investment decision-making ?Solution
The discount factor used in capital budgeting is the rate of return that a company could earn by investing in another project or security of similar risk. This rate is considered as the opportunity cost of capital for the business. It is the rate that investors could earn elsewhere on investments with similar risks. Therefore, the discount rate is used to evaluate the profitability of the investment opportunity by discounting the future cash flows back to their present value.
Goldman Sachs has revised upwards the growth estimate for India by 30 basis points (bps) to _______ for the calendar year (CY) 2023, given the boost in ...
Under SPREE, from which date will employers be considered registered under ESI?
Who inaugurated the indigenous Differential Global Navigation Satellite System (DGNSS) 'SAGAR SAMPARK' as part of the digital initiative in the maritime...
“Soul Curry For You And Me” is a book written by which of the following Indian Actors?
The Insurance Regulatory and Development Authority of India (IRDAI) plans to create which initiative to address protection gaps in states?
What significant action did the Supreme Court direct the Centre to undertake following the split verdict on the environmental release of genetically mod...
Who has assumed the presidency of the Financial Action Task Force (FATF) for the term 2024-2026?
What is the name of the comprehensive digital platform launched by Dharmendra Pradhan, Union Minister for Education and Skill Development and Entreprene...
When did the 16th edition of the India-Mongolia Joint Military Exercise NOMADIC ELEPHANT commence?
The government has appointed which IT Company as its strategic partner to revamp the Government e-Marketplace (GeM) with an aim to transform GeM into a ...
