The required rate of return represents the discount rate for a project

Finance Jan 14, 2021

The required rate of return represents the discount rate for a project. True False

Expert Solution

The answer is true.

Yes, the rate of return represent the discount rate. Because the discount rate is the rate at which the future cashflows of a project are discounted and rate of return is the actual return earned from the project. Both are basically the same rates.

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