Questions tagged [discount-rate]
The discount-rate tag has no usage guidance.
6
questions with no upvoted or accepted answers
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Hyperbolic Discount function
I'm trying to determine my hyperbolic discount function for a given set of my own time preferences. I have determined that I am indifferent between {$}1000 today and {$}1004 tomorrow; {$}1000 today ...
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0answers
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Due-diligence behind discount window lending
Its clear the Federal reserve is doing risk assessments at the discount window since they separate credit into primary and secondary.
I'm curious how secondary credit risk is handled. Given that ...
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0answers
81 views
Why is there a stochastic discount factor in firms present value?
In a book I am reading, the problem of the firms is described as maximizing current market value of profits.
$$\max \sum_{k=0}^\infty \Delta_{t, t+k} \cdot "\text{profits in period k}"$$
So, ...
1
vote
1answer
346 views
Calculate optimal discount for product bundling
So recently I made some rules with my transaction data. Based on it I can determine which products are profitable to bundle it together.
But even though I know e.g. product A→ product B, are there ...
1
vote
1answer
234 views
International Capital Asset Pricing Model (CAPM)
I wanted to value a High-tech start-up of which I have the cash flows of the coming 6 years. I decided to use the Discounted Cash Flow Method. To do so, I calculated the Discount rate.
For a High-...
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0answers
8 views
Levelized cost of energy - why discount the amount of electricity as well
According to Wikipedia, the levelized cost of electricity is a measure of the average net present cost of electricity generation for a generating plant over its lifetime. According to the formula ...
