2003Shanxi AgchitectureRequires access

Simple discussion on how to decide discount rate in financial evaluation for investment project

C Hua

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Abstract

Under the condition of market economy, when carrying on financial evaluation for investment project, some kind of methods deciding discount rate and their advantages and disadvantages are studied. And the calculation formula that is in accordance with each method is also given. Finally the author put forward that for different investor the choice of methods deciding discount rate should be dependent on different situation.

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What this paper is about

Under the condition of market economy, when carrying on financial evaluation for investment project, some kind of methods deciding discount rate and their advantages and disadvantages are studied. And the calculation formula that is in accordance with each method is also given. Finally the author put forward that for different investor the choice of methods deciding discount rate should be dependent on different situation.

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Available abstract

Under the condition of market economy, when carrying on financial evaluation for investment project, some kind of methods deciding discount rate and their advantages and disadvantages are studied. And the calculation formula that is in accordance with each method is also given. Finally the author put forward that for different investor the choice of methods deciding discount rate should be dependent on different situation.

Key concepts: Simple (philosophy), Investment (military), Economics, Finance, Actuarial science, Discounting, Financial market, Interest rate

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