Market Risk Marketability Net Present Value Risk-free Rate 
Valutico
FEBRUARY 27, 2024
The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis.
Valutico
OCTOBER 20, 2022
The important figure there is r, which we’re using as the discount rate in this whole equation. But here, we use what interest we could get from an alternative investment in the market, called the Market Rate. This is the rate of return you’d get if you invested your money today instead. . You get: Year.
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