The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the time value of money, which is the concept that a sum of money ...

The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a ...

It excludes external factors such as capital costs and inflation ... It also is more appropriate when it is difficult to determine a discount rate. NPV is better in situations where there are ...

This type of discount has been rejected about as often in cases as it has been applied. As with all factors in a business appraisal based on fair value, the facts of the particular case and the ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Thomas J Catalano is a CFP and Registered Investment ...