How do u know which rate to use to discount? instead, capital, required, multiple, discount

dmar

A little late for this but it depends on how they are financing the project. The question will give you the info you need. Do you have an example?

richer

When given multiple things such as WACC, cost of equity capital, required rate of return, return on equity etc... How do you know which one is to discount?

I've seen questions where u choose cost of equity capital instead of WACC and required rate of return instead of return on equity.

thnx!