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AFP

CTP · Question #99

(Topic 1) What is the MOST appropriate rate used as the discount rate in calculating NPV?

The correct answer is A. Marginal cost of capital. See the full explanation below for the reasoning.

Question

  • (Topic 1)

What is the MOST appropriate rate used as the discount rate in calculating NPV?

Options

  • AMarginal cost of capital
  • BIRR
  • CCost of debt
  • DInternal transfer rate

How the community answered

(42 responses)
  • A
    79% (33)
  • B
    12% (5)
  • C
    7% (3)
  • D
    2% (1)

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