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Discussion in 'Introductions' started by Angela, 8th May, 2012.

  1. Angela

    Angela Member

    Joined:
    8th May, 2012
    Posts:
    13
    Location:
    Melbourne
    Hi everyone
    I recently stumbled onto this forum and its an absolute god send - I am so glad to find out there are other people out there doing this subject and can bounce ideas off!!

    I have just started the investment planning assignement (AS3002) and what a nightmare. Up until now I think I have been going ok but am up to question 3 and a little confused as to the discount rate to use for the DCF calculations. In the assignment with reference to Q3 and DCF calculations the info supplied states that the relevant discount rate is 7.5% however this rate includes the interest rate for the property loan of 7.2%. I didnt think you were supposed to use loan repayment amounts in the DCF calcs when calculating the Present value of an investment???

    I'm a little confused - any guidance, suggestions are greatly appreciated.

    Thanks
    Ange