The proper rate to use in the expected cash flow model is th

The proper rate to use in the expected cash flow model is the risk-free rate of return.

Select one:

True

False

Solution

Answer is FALSE

Expected cash flow model involving risks since the cash flows are not certein.So rate of return to be used in expected cash flow model will be always a Risk adjusted one which is normally higher than Risk free rate of return.

The proper rate to use in the expected cash flow model is the risk-free rate of return. Select one: True FalseSolutionAnswer is FALSE Expected cash flow model i

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