discount rate
The discount rate is the rate of interest at which a firm could earn income given a variety of potential scenarios.
discount rate
The discount rate is the rate of interest at which a firm could earn income given a variety of potential scenarios.
Additional Information
For example, in comparing disparate cash flow loss funding plans, comparing the net costs of each on a net present value basis allows the plans to be evaluated on a standard basis, using the firm's discount rate.
