To determine whether to make an investment you must estimate the value of the investment based on your ________ and compare that to the market price.
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A. B. C. D.B
Typically one invests in order to get a series of returns in the future, to discount these future returns to net present value (NPV), one must use a discount rate, which is the rate one requires the investment to yield.
Using this discount rate, one can then compare the NPV with the market price to determine if the investment is attractive.