Discounting rate: a matter of common sense rather than a theoretical problem
Discounting rate: a matter of common sense rather than a theoretical problem
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Fecha
1999
Autores
Rosbaco, Juan
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“Different rates proposed by several authors to discount cashflows of given projects are discussed. The paper starts by reviewing what the objectives of an evaluation are and later presents the different discount rates suggested by the authors. After a theoretical but fundamentally logical analysis it is concluded that there is no universal discount rate that can be used in all situations; to do so would disregard both the fact that an evaluation can have different objectives and that the environment in which projects will be carried out and companies will develop is unique in each case.”