Discount rate to assess the profitability of the project


Problem:

The "discount rate" is a key factor to consider when comparing potential projects or investments by the MNC. Assume you are the task manager in charge of assessing the location of a new manufacturing facility to be located in Chile. Your accountants have "crunched the numbers" across a 30 year horizon, but you must decide which specific percentage to use as your discount rate to assess the profitability of the project. Choose and justify your chosen discount rate

and

Summarize an article (or series of articles) regarding the investment decision of a MNC made during the past five years. What key concepts from the assigned reading apply?

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Finance Basics: Discount rate to assess the profitability of the project
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