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

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.

(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.

The Greek government currently must pay 25 for its ten year bonds, which are trading at a 50 discount in the secondary market.

1) The discount rate assumption relies on the market for competing investments at the time of the analysis, which would likely change, perhaps dramatically, over time, and 2) straight line assumptions about income increasing over ten years are generally based upon historic increases in market rent but never factors in the cyclical nature of many real estate markets.

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

Emerging market interest rate spreads now are abnormally low.

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.

The timing of the 2001 rate decrease stunned the market.

Indeed, the official unemployment rate understates the weakness of the labor market.

19.1 The rate of participation of young girls in the labour market.

Raising women s labor market participation rate boosts economic performance in a number of ways.

Since 2003, the market has posted a compound annual growth rate of over 110 .

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

As a result, market oriented interest rate reform is now needed to help optimize capital allocation and support the development of China s financial market, thereby laying the groundwork for future capital account and exchange rate liberalization.

Sami invited Layla back for an even bigger discount.

But the main concern centers around the Treasury s apparent intention to pay more than double the current market price (20 30 cents on the dollar) on the premise that its success in untangling the mortgage market would make any discount seem like a bargain.

But the main concern centers around the Treasury s apparent intention to pay more than double the current market price (20 30 cents on the dollar) on the premise that Treasury s success in untangling the mortgage market will make any discount seem like a bargain.

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 .

Emerging market economies will take some steps, including interest rate cuts, to safeguard domestic growth.

Sometimes we rely on our judgment in combining interest rate action with open market operations.

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

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

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.

What China needs is a more flexible exchange rate that can respond freely to market forces.

Like many other successful emerging market countries, Mauritius is confronting a loss of exchange rate competitiveness.

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.

This led to the development of a parallel market of dollars in the subsequent years with the official exchange rate less than a sixth of black market value.

China is reforming its policy, as a part of a move to a more market determined exchange rate.

And the fact that China s market exchange rate was far lower (i.e., more yuan per dollar) than the earlier PPP exchange rate had been interpreted as evidence of huge undervaluation.

The Panel notes that, according to various reports, the unofficial exchange rate or market rate prior to Iraq's invasion of Kuwait was approximately 11 Iraqi dinars to one Kuwaiti dinar.

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.

Clearly, the market has reached its own verdict, reflected in the gap between the official exchange rate of 4.6 Argentine pesos to the dollar and the black market rate, which recently reached 6.8, with some economists whispering that an eight peso dollar is likely before too long.

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.

The Fed could, in principle, limit inflationary lending by raising the interest rate on excess reserves or by using open market operations to increase the short term federal funds interest rate.

One sure way to reduce the savings rate in China would be to develop an American style mortgage market there.

Domestic financial reforms will focus on strengthening policy coordination and moving toward market determined interest rates and exchange rate flexibility.