Jan 1
Posted by Greg in Discount Blog | 1 Comment
I have a rental and I need to set the price accordingly.
NPV is Net Present Value, which is a tool to determine whether an investment is worth it or not within a certain discount rate (the minimum rate of return we want in percent).
The building is located in a residential area, a gated housing community (not the high class one though). Will be rented out to workers and college educational institute students and has about 7 rooms to rent out.
2 seconds ago
Tags: college educational institute students, housing community, present value, rate of return, residential area
A stock sells for . The next dividend will be per share. If the rate of return earned on reinvested funds is 15 percent and the company reinvests 40 percent of earnings in the firm, what must be the discount rate?
Tags: dividend, earnings, rate of return, stock
Mar 10
Posted by Greg in Discount Blog | 1 Comment
A business is considering a 0,000 project. The current annual rate of inflation is 4%. One option is to take out a loan for 8.5% for the investment. The current production rate of return is 9.5%. If the company was to invest the 0,000 instead of carrying out the project, the expected rate of return would be 9.25%. What should the discount rate be for evaluating this project option?
Tags: annual rate of inflation, project option, rate of inflation, rate of return
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