masthead for advanced excel

Discount Rate for NPV and IRR

Discount rate is the rate used to discount a series of cash flow to the present value so that investments or project can be evaluated on the same basis, the present value. Discount rate has always been mistaken to be the interest rate for a loan. This is not the case. Assumming that there is no interest and the investment is very safe, the discount rate used to evaluate a investment would be the inflation rate. This rate


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