Opportunity Cost of Capital
Example - continued
Discounting the expected payoff at the expected
return leads to the PV of the project.
$ 95 , 650
1.15
110,000
PV = =
Opportunity Cost of Capital
Example - continued
Discounting the expected payoff at the expected
return leads to the PV of the project.
$ 95 , 650
1.15
110,000
PV = =