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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Project Specific Discount Rate
Hello John,
I was reviewing the calculation of a project specific discount rate for a proposed investment but i need your help for some theory. My question is what are the problems that may be encountered in applying a project specific discount rate to a proposed investment?
Thanks
Shivanand
The main problem is determining the riskiness (the beta) of the proposed investment.
Thanks John. I do appreciate your feedback.
You are welcome 🙂