Present value (PV) calculates what a future sum of money is worth today. It is based on the time value of money, which assumes money today is more valuable than the same amount in ...

Discover the key differences between the cost of capital and the discount rate in estimating required returns for projects or investments.

Forbes contributors publish independent expert analyses and insights. James Broughel is an economist focused on the economics of regulation. In the complex world of regulatory cost-benefit analysis, ...

First, let’s be clear on what the discount rate is. If we consider valuation calculations as a two-step process, the first step is to determine the expected future cash flows from the pension scheme ...

The government has proposed aligning the discount rate review periods with the valuation cycles of public service pension schemes, and is taking forward reforms to the cost-cap mechanism first ...