Find the IRR and use it as the discount rate that causes NPV to equal zero. Alternatively, you can use the What-If analysis tool, a built-in calculator in Excel, to solve for the discount rate ...

Factor rates typically range from 1.10 to 1.50 and only apply to the original amount of money borrowed. It’s a fixed cost that doesn’t change throughout the life of the loan, unlike a variable ...

The discount factor should be adjusted higher for projects with riskier and less certain cash flows. Long-term projects should use a higher discount rate than short-term projects. Advertisement ...

Find the IRR and use it as the discount rate that causes NPV to equal zero. Alternatively, you can use the What-If analysis tool, a built-in calculator in Excel, to solve for the discount rate ...