Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

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 ...

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

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Requiring that the value of discounted cash earnings is near the Net Asset Value explains why REITs are generally priced near NAV. It makes sense for the market to assign less value to future growth ...

Warren Buffett values stocks based on the present value of free cash flows, like all sensible value investors. However, his attitude towards discount rates is very ...

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, ...

You have /3 articles left. Sign up for a free account or log in. I can’t think of a metric that is more misunderstood and misused among college presidents, trustees ...