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The Appropriate Discount Rate That Analysts Use in Computing the Present

question 97

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The appropriate discount rate that analysts use in computing the present value of future cash flows is composed of a pure interest rate,a premium for the risk of the investment,an increase to reflect expected inflation.What is this rate is called?


Definitions:

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A technique for assessing the environmental impacts associated with all the stages of a product's life from raw material extraction through materials processing, manufacture, distribution, use, repair, maintenance, and disposal or recycling.

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A natural fiber harvested from the cotton plant, used primarily in the textile industry for making fabrics.

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