Topics related to universal accounting principles and best practices, local GAAP, audit, laws and regulations affecting financial reporting, and other financial reporting topics.
This is also the appropriate forum for beginners to ask any questions, even if they pertain to IFRS.
Hi Everyone,
Let's say a company analysing an investment and it uses discounting cash flow (DCF) to assess the profitability. I understand the most common method might be using risk free rate plus risk premium.
I wonder if it's common to use IBR as the discount rate for non-lease capex such as property and machinery investments?
I'd say WACC is used most often, but this view isn't based on any research. Using rates based on borrowings only overlooks the cost of (expected return on) equity.
