Hello, Guest   |   Login here
A concept that asks, “How much money will I have to invest today at a discount rate of d percent in order to have x pounds at the end of n periods?” e.g., “How much money will I have to invest today at 10% per year in order to have 16,100 at the end of 5 years?” The rate used to discount future cash flows to their present values is a key variable in this process. The discount rate is the minimum acceptable rate of return on an investment whether in a project or in a firm. The term Present Value is usually associated with one particular method of analysis in investment appraisal – the Net Present Value (NPV) method. The discount rate is equal to the investor’s cost of capital plus 

Subscribe today and learn the fundamentals

It seems you don't have access to the exclusive content of The Course.

In order to gain access to the content of The Course you will have to register with EntreprenAble. Membership with EntreprenAble will also give you access to our interactive Business Game and Accounting Simulations.

Subscribe today and get:

  • Unlimited website access to The Course
  • Optimized view for Desktop, Tablet and Mobile devices
  • Free 7-day, no obligation trial - normally £15
Start free trial
Test-drive the system for free
Page 1 of 3 1 2 3