Appropriate discount rate
25 Jun 2019 An appropriate discount rate can only be determined after the firm has approximated the project's free cash flow. Once the firm has arrived at a Generally, the capital cost of the project is assumed to accrue at the start of year zero in the analysis period. Determination of an appropriate discount rate is a key Here goes. Discount Rate Basics. In commercial real estate, the discount rate is used in discounted cash flow analysis to compute a net present value. The