The Discount Rate Used to Calculate the NPV Should Be

question 131

True/False

The discount rate used to calculate the NPV should be the interest rate that the company could borrow at to finance the proposed capital project.

---

Definitions:

Mobile Device Hardware

The physical components that make up a mobile device, such as the screen, battery, processor, and cameras.

Internet Services

Various services available over the Internet, including web browsing, email, online gaming, and social networking services, among others.

VoIP

Voice over Internet Protocol, a technology that allows voice calls to be made using a broadband Internet connection instead of a regular phone line.

World Wide Web

An information system where documents and other web resources are identified by Uniform Resource Locators (URLs), interconnected by hyperlinks, and accessed via the Internet.