NPV helps determine whether a proposed project will add value, i.e., generate a profit. As such it’s a crucial part of corporate budgeting. In this article, we are looking for the discount rate ...

Because many projects are funded in multiple ways, companies will often calculate a weighted average cost of capital (WACC) in budgeting for a potential new initiative. The discount rate is the ...

IRR could also help determine whether it is more profitable to establish a new operation or expand your existing one. Defining IRR IRR is the discount rate that makes the net present value (NPV ...

In this article, we are looking for the discount rate that results in the NPV equaling zero. Doing so allows us to determine the internal rate of return (IRR) of a project or an asset. The IRR is ...