Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

Understand the differences between the prime rate and discount rate, how each affects borrowing costs, consumer loans, and the role of the Federal Reserve.

In regulatory cost benefit analysis the discount rate translates future value to present terms. Regulatory costs, such as investments in pollution control equipment or redesigning nutrition labels, ...

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First, let’s be clear on what the discount rate is. If we consider valuation calculations as a two-step process, the first step is to determine the expected future cash flows from the pension scheme ...

Requiring that the value of discounted cash earnings is near the Net Asset Value explains why REITs are generally priced near NAV. It makes sense for the market to assign less value to future growth ...