Variance Analysis Discussion

Subject: Business    / Finance
Question

Variance Analysis Discussion

This is a discussion question and needs to be in word form. At least 250 words. I do not want formulas.

Consider the following:

· What factors are used by an organization to determine the appropriate discount rate to use for a net present value analysis?

· In that scenario, what are the advantages of using net present value and internal rate of return methods to evaluate capita budgeting decisions instead of the payback period?