Typically, the discount rate used in these applications is the market rate. However, based on circumstances related to the project or investment, it may be necessary to utilize a risk-adjusted ...
Adding a risk premium to the cost ... Two primary formulas are used to determine discount rate: the weighted average cost of capital (WACC) and the adjusted present value (APV).
Discount rates normally include many factors including ... R i: Risk mediated after i years have passed with success. rNPV (risk-adjusted net present value): The current value of a biotechnology ...
That explains why dynamic bond funds, medium duration, and low duration funds figure at the bottom on risk-adjusted returns. Incidentally, floating rate funds and credit risk funds delivered the ...