An appropriate discount rate can only be determined after the company has approximated ... in more volatile industries, such as tech, have higher costs of capital because of uncertain cash flows ...

For instance, tech ... cost of capital for the company, while the RRR is a more specific measure that is used to evaluate the viability of individual investments. WACC serves as the discount rate ...

The ratio between debt and equity in the cost of capital calculation ... effective proxy for a discount rate when calculating net present value or NPV for a new project. Companies can use WACC ...