Asset Management - Assessment 2 - orders 741163 and 741172 should be done by the same writer - Coursework Example73). These two are considered viable considerations because they aid in analyzing the profitability of the given investment.Given the 6 projects that have been earmarked by the company, the best form of discount rate that will be preferred would be the Weighted Average Cost of Capital. This is selected against the backdrop that it helps in identifying the cost of working capital available to the company (Muller, 2002, p 36). This is done by way of calculating the individual rates at which the company is expected to execute payment on average to its securities so as to clear or finance its capital assets. The weighted average cost of capital (WACC) is preferred over others as it holds the potential of ensuring that payment of security holders are not done offhand but on an average basis to ensure that the net present value can be measured.
