The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV can help companies determine whether a proposed project may be profitable.

The discount rate is the interest rate used to calculate net present value (NPV). It represents the time value of money. NPV ...

Using the Capital Asset Pricing Model A common tool used to calculate a risk-adjusted discount rate is the capital asset pricing model (CAPM). Under this model, the risk-free interest rate is ...

Discount rates make it affordable for banks to borrow ... account is an interest-bearing bank account that’s hard to find these days. Learn more about how NOW accounts work.