An attempt to define the discount rate in the light of the type of investment project

Foltyn-Zarychta, Monika (2010): An attempt to define the discount rate in the light of the type of investment project. Published in: European Financial Systems No. 2010 (2010): pp. 17-21.

Abstract

The problem of estimating the discount rate level is a crucial issue in investment project appraisal procedure. The discount rate is strongly determined by the type of investment that sets the scope of decision criteria. The need to apply financial efficiency, economic efficiency or justice criterion impose the frames for theoretically correct measure of the discount rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: discount rate, investment appraisal
• Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; H - Public Economics > H4 - Publicly Provided Goods > H43 - Project Evaluation ; Social Discount Rate

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