The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

The problem with the interest rate is that is doesn't usually reflect the true cost of borrowing money, as mortgages can come with up-front fees and costs, particularly discount points.

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 ...

while a higher discount rate results in a lower present value. A number of online calculators can compute present value for your annuity. But if you want to figure out present value the old ...

Being able to calculate the dividend growth rate is necessary for using the dividend discount model. The dividend discount model is a type of security-pricing model. The dividend discount model ...

CRE practitioners frequently discuss the calculation and application of capitalization rates in making investments, however, there is not much posited on the discount rate used in CRE financial ...

The problem with the interest rate is that is doesn't usually reflect the true cost of borrowing money, as mortgages can come with up-front fees and costs, particularly discount points.

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.