ROOKIE QUESTION ALERT - determining Discount Rate

Hi all,

This might be a rookie Q, but I'm pretty young. I understand what a discount rate is, and how it factors into an NPV calculation. I also understand what an IRR calculation is, and how a target IRR should, in theory, equal the discount rate if you buy the same value as your NPV.

So my question is... how do you determine your Discount Rate?

Tyia - rocking banana

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ROOKIE QUESTION ALERT - determining Discount Rate

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ROOKIE QUESTION ALERT - determining Discount Rate

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