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A positive number  (usually denoted as ) which drives the value of Cash Discount over accounting period (usually 1 year) as:


 \mbox{Discounted Cash Value} = \frac{ \mbox{True Cash Value} }{1+r}


The value of discount rate is set by the corporate investment policy and usually at higher rate than Weighted Average Cost of Capital with typical market inputs.


See also


Economics / Cash Discount

Weighted Average Cost of Capital (WACC) ]