What factors are used by an organization to determine the appropriate discount rate to use for a net present value analysis?


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What factors are used by an organization to determine the appropriate discount rate to use for a net present value analysis?


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Variance Analysis Discussion

This is a discussion question and needs to be in word form.  At least 250 words.  I do not want formulas.

Consider the following:

· What factors are used by an organization to determine the appropriate discount rate to use for a net present value analysis?

· In that scenario, what are the advantages of using net present value and internal rate of return methods to evaluate capita budgeting decisions instead of the payback period?