Questions tagged [discount]

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8
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1answer
195 views

On the Ms. Exponential vs Ms. Hyperbolic vignette

I've come across this little parable purporting to show why exponential discounting is superior to hyperbolic discounting1: The greater bowing [of the hyperbolic discount curve] means that if a ...
2
votes
2answers
71 views

Rationale for discounting

I am interested in understanding the rationale behind discounting in the context of government policy appraisal. As far as I understand it, there are three main components to the discount values ...
1
vote
1answer
22 views

Are sales (discounts) an investment or a loss?

Are sales (discounts) during a promotional period considered an investment by the company/manufacturer to drag in more customers? Or a loss that wouldn't be paid back anytime in the future, but also ...
1
vote
1answer
120 views

Discount function

Company A needs to provide service $p$ to company B. However if the company B will reserve the $(1-\alpha)$ fraction of resource for the serving customers of company A, company A will provide a ...
1
vote
2answers
761 views

Compound interest problem using PMT in Excel

So I found this example in the net Compound interest formula (including principal): A = P(1+r/n)(nt) If an amount of $5,000 is deposited into a savings account at an annual interest rate ...
1
vote
0answers
21 views

Continuum limit of a weighted mean of heterogeneous discount factors

I try to find the limit of the following expression of a weighted mean of a series of discount rate $\rho_{i}$ Here is the expression ; $$\rho_{\eta}\left(t\right)=\frac{\sum_{i}^{N}\rho_{i}\left(\...
0
votes
1answer
3k views

Formula for Effective Discount Rate of Discount Rate Series

what is the formula to calculate an effective discount rate of Discount Series? For EX, If Price of Product A is $X and Discount Series is given like 10%,20%,30%,5%,2%. How can we calculate effective ...
0
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0answers
20 views

discount function with logarithm

I have a function f(x) in which there is log function $f(x)=log(1+ax)-bxg(x)$ I need a discount function g(x) with which the function f(x) is concave and the value of x is not too complex. I ...
0
votes
0answers
19 views

Net Present Value with investments in multiple phases

I am trying to calculate the Net Present Value for a theoretical project in which, unlike most examples in textbooks and on internet tutorials, investments do not only happen in t=0, but they also ...