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UNH Economics Discounting NPV Discount Rate Cash Flows & WACC Discussion

UNH Economics Discounting NPV Discount Rate Cash Flows & WACC Discussion

Question Description

Suppose that you are evaluating a project using the NPV rule but are unsure of what the proper discount rate should be. Would you rather compute NPV using a high or low estimate of the discount rate? What are the advantages and disadvantages of your approach compared to the alternative?


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