I’ve written about this under the rubric of the “high discount rate problem.” Most people have what economists call a very high discount rate. We want what we want now, even if we’d be ...

The basic problem is the ... Marty Weitzman, for example, has long made the argument that the greater the future uncertainty we face the lower should be the discount rate (that's applied to ...

NEW YORK (CNNMoney.com) -- The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half ...

The loans are used by financial institutes to cover any cash shortfalls, head off any liquidity problems ... discount rate refers to the interest rate used to determine the present value. For ...

The problem is that depending on ... get if you would invest in Government bonds for example) + a risk premium. In other words, the discount rate is how much you should earn for your investment ...

That interpretation, however, is a vestige of the way the discount rate is constructed. In reality, the data do not support that conclusion. A simple example illustrates the flaw in this reasoning.

In the project from the previous example, say you used a discount rate of 15 percent. The total present value drops to about $97.54. That's less than the $100 upfront cost. Because of the added ...

First, let’s determine the base discount rate. The problem is you don’t know what ... avoid double-penalizing the patent’s value. For example, concerns about the rule of law in a given ...

Secondary credit is given to banks that are in financial trouble and are experiencing severe liquidity problems ... credit rate. Example: The federal funds rate may be 1%; the discount rate ...

A few short examples can illustrate why we cannot rely on the discount rate as a way of comparing financial health and revenue. If two colleges have tuition discount rates of 50 percent and College A ...

Personal injury lawyers have warned the Ministry of Justice to avoid approaching the discount rate for PI damages as though it were a ‘hypothetical maths problem’, ahead of a planned review.