answersLogoWhite

0


Best Answer

Discount factor is the factor determining future cash flow, but multiplying the cash flow to obtain present value. Discount rate is used in calculations to equal the cost of capital.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between discount factor and discount rate?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the difference between profit maximization and value maximization?

discount rate


What is the difference between federal funds rate and the discount rate?

The Federal Funds rate abbriviated as Fed Funds is the overnight loan rate between banks. The Discount Window is the Federal Reseve Bank of New York's overnight interst rate charged to banks from the Federal Reserve, called the discount window rate.


Difference between discount rate and interest rate?

Interest rate is the amount that is paid over and above the original loan amount. Discount rate is the amount of money that is cut or reduced from the original price.


Difference between interest rate and discount rate?

Interest rate is the amount that is paid over and above the original loan amount. Discount rate is the amount of money that is cut or reduced from the original price.


What is a discount?

A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.


What is a blind discount?

A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.


What is the relationship between wacc and discount rate of return?

relationship between WACC and required rate of return.


Is the straight-line amortization or effective interest rate method better?

This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)


Difference between rate constant and specific rate constant?

There is no difference between them they are same rate constant is another name of specific rate constant


How can you calculate the evaporation rate of your swimming pool?

To calculate the evaporation rate of your swimming pool, you can use a simple formula: Evaporation Rate = (Pool surface area) x (Evaporation rate factor) x (Temperature difference). Measure the surface area of your pool, find the evaporation rate factor for your area, and determine the temperature difference between the pool water and the air. Multiply these values to calculate the evaporation rate.


Can you put the word discount rate in a sentence?

I'm calling to check on your best discount rate. I bought this paint at a discount rate. The discount rate does not apply on Saturdays.


What does factoring rates mean?

Factoring rates apply to the practice of businesses selling receivables at a discount to a factor, who then collects the funds. The factoring rate is the amount of the discount at which the receivable is purchased.