Jul 27, 2025 · The discount rate is the lending rate at the Federal Reserve's discount window, where banks can get a loan if they can't secure funding from another bank on the market.

A discount rate is the rate of return used to discount future cash flows back to their present value. It is often a company’s Weighted Average Cost of Capital (WACC),

Apr 7, 2025 · The discount rate, often called the “cost of capital”, is the minimum rate of return necessary to invest in a particular project or investment opportunity. In corporate finance, the …

3 days ago · How it's used: The Fed uses the discount rate to control the supply of available funds, which in turn influences inflation and overall interest rates. The more money available, the more likely...

Discover what discount rate is, why it’s used, and how to calculate it, diving into some examples to illustrate.

Discount rate refers to the rate of interest that is used to discount all future cash flows of an investment to derive its Net Present Value (NPV). NPV helps to determine an investment or project’s feasibility.

Mar 29, 2023 · Discount rate is the rate of return used to discount future cash flows when calculating an investment's present value. A discount rate is applied to future cash flows because money earned in …