Discount rate; also called the obstacle rate, expense of capital, or required rate of return; is the expected rate of return for a financial investment. In other words, this is the interest percentage that a company or investor anticipates receiving over the life of an investment. It can also be thought about the rate of interest utilized to calculate today worth of future capital. Thus, it's a needed part of any present worth or future worth computation (How to owner finance a home).…
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