The hurdle rate is the minimum acceptable return on an investment i.e., the project appropriate discount rate.

However the assumptions used in the appraisal (especially the equity discount rate and the projection of the cash flows to be achieved) are likely to be at least as important as the precise model used.

The answer depends on two key variables the discount rate and future earnings growth.

Because both the discount rate and growth rate are assumptions, inaccuracies in one or both inputs can provide an improper value.

The liabilities were valued on the basis of a discount rate of 5.5 per cent.

In each case, the differences lie in the choice of the income stream and discount rate.

In addition, it is important to note that at a given discount rate, any exit multiple implies a terminal growth rate and conversely any terminal growth rate implies an exit multiple.

The discount rate used is generally the appropriate weighted average cost of capital (WACC), that reflects the risk of the cashflows.

Also, the perpetuity growth rate assumes that free cash flow will continue to grow at a constant rate into perpetuity.

(A common error in choosing a discount rate for a project is to apply a WACC that applies to the entire firm.

Ecological losses are calculated as the difference between the actual catches and the expected catches, using a three per cent annual discount rate.

7. Decides that the least developed countries should be placed in a separate level and receive the highest rate of discount available under the scale

The consumption discount rate should account for the possibility that, as consumption grows, the marginal unit of consumption may be considered to have less social value.

Let s not discount that statement.

And, because people trade bonds for commodities, cash, and stocks, the prices of government debt are the rate of inflation, the nominal interest rate, and the level of the stock market.

Sami invited Layla back for an even bigger discount.

In the United States, the Federal Reserve has lowered its benchmark interest rate ten times since August 2007, from 5.25 to a zone between zero and 0.25 , and has reduced the discount rate 12 times (by a total of 550 basis points since June 2006), to 0.75 .

It's a difficult theory to discount, I think you'll agree.

There's a scratch here. Could you give me a discount?

However, if sales are slow, leading to a month of low cash flow, then the operator may decide to pay within 30 days, obtaining a 10 discount, or use the money another 30 days and pay the full invoice amount within 60 days.

21 Debt buy backs involve buying back the claims at the net present value of the remaining cash flows the net present value is calculated by discounting cash flows at risk free rate plus a market referenced common country risk spread.

Its proponents argue that it is the main policy instrument left, and that it will work by increasing credit or lowering the discount rate, which will raise asset prices and hence consumption via balance sheet effects.

There's really no dispute about progress, if we discount the cost of that.

Let s assume that costs to prevent additional accumulation of CO2 (and equivalents) come to 1 of GNP every year forever, and, in accordance with a fair amount of empirical evidence, that the component of the discount rate attributable to the declining marginal utility of consumption is equal to twice the rate of growth of consumption.

Cash holdings

Cash advances

Their bonds sell at a discount relative to those of better managed individual states.

Working capital is measured through the difference between resources in cash or readily convertible into cash (Current Assets), and cash requirements (Current Liabilities).

Against this view, Keynes pointed out that interest rate reductions may not do the job, because at zero or near zero rates investors hoard cash rather than lend it out.

Contributions in cash

C. Cash couriers

Selective Cash Assistance

The fortuneteller says, I give smokers a discount because there s not as much to tell.

But it is also a mistake to discount the importance of leaders with humanitarian values.

Under the expected loss model, these revised expected cash flows are discounted at the same effective interest rate used when the instrument was first acquired, therefore retaining a cost based measurement.

Instead, we purchased Al Qaeda, which we found wrapped in yellow tape in the discount bin.

Credit card or cash?

Credit card or cash?

Cash Aid for Africa

Apple s Cash Flow Problem

Management of petty cash

SR IX. Cash Couriers

a transaction involving cash

4120 Cash margin requirement

Cash and term deposits