Discount Rate Defined: How It's Used by the Fed and in Cash Flow Analysis

"Discount rate" has two distinct definitions. It can refer to the interest rate that the Federal Reserve charges banks for ...
londonlovesbusiness.com

The role of discount rate in Net Present Value analysis

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JournalofAccountancy

Modeling and Discounting Future Damages

IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount rates. BUSINESS ...
Investopedia

Cost of Capital vs. Discount Rate: What's the Difference?

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Vikki Velasquez is a researcher and writer who has ...
Forbes

Federal Economists Are Still Getting The Discount Rate Wrong

Forbes contributors publish independent expert analyses and insights. James Broughel is an economist focused on the economics of regulation. In the complex world of regulatory cost-benefit analysis, ...
San Francisco Fed

I find definitions of the federal funds rate stating that it can be both above and below the discount rate. Which is correct?

Great question! The correct answer depends on the time period. Since January 2003, when the Federal Reserve System implemented a “penalty” discount rate policy, the discount rate has been about 1 ...
Inside Higher Ed

Focus on Net Revenue, Not Discount Rate

I can’t think of a metric that is more misunderstood and misused among college presidents, trustees, faculty and staff than the tuition discount rate. When a metric is commonly misunderstood in its ...