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The 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 better off waiting for a better outcome.
The interest rate your lender gives you isn't the true cost of your mortgage. Learn how to calculate your effective interest ...
The discount rate used in valuation calculations is incredibly important. A low discount rate will give you a high equity valuation as cash flows will be worth more in the future than they are ...
In this world, the college is collecting considerably more revenue, but the discount rate actually rises to 35 percent. This clearly isn’t consistent with the notion that a rising discount rate ...
The discount rate is a financial term that can have two meanings. ... For example, an investor expects a $1,000 investment to produce a 10% return in a year. In that case, ...
The excellent Timothy Taylor (obviously, any economist called Tim will be excellent) has an interesting discussion of whether the US should adopt a declining discount rate for evaluating long term ...
The discount rate, ... Fortune 500), for example, ... "The problem is if the Fed cuts rates it could put the dollar into a bigger tailspin. Oil prices would go up.
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.
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.
For example, using a 10% discount rate, $10,000 in one year would be worth $9,090.90 today (10,000 / 1.1). The IRR equals the discount rate that makes the NPV of future cash flows equal to zero.
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