Noun
interest on an annual basis deducted in advance on a loan
the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
Source: WordNetBurgess said that while social discount rate analysis works for deciding how much governments should spend on things like roads or bridges, it may not be appropriate for problems like epidemics and climate change. Source: Internet
Equivalently, the IRR of an investment is the discount rate at which the net present value of costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash flows) of the investment. Source: Internet
Another approach to choosing the discount rate factor is to decide the rate which the capital needed for the project could return if invested in an alternative venture. Source: Internet
A variable discount rate with higher rates applied to cash flows occurring further along the time span might be used to reflect the yield curve premium for long-term debt. Source: Internet
Determined growth rates (of income and cash) and risk levels (to determine the discount rate ) are used in various valuation models. Source: Internet
Here, the discount rate is different from the discount rate the nation's Central Bank charges financial institutions. Source: Internet