GLOSSARY

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@wikipedia



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


LaTeX Math Block
anchorr
alignmentleft
 \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) ]