The correct determination of discount rate is fundamentally important when calculating current cost of future
cash flow. This procedure has to be fulfilled when evaluating investment projects, cost of operational and projected
business, and some types of financial operations. In this regard the correctness of discount rate determination is very
important, as its choice determines the end value of cash flow current cost. There is much debate in scholarly literature
about discount rate determination. The solution to the problem of scientifically grounded discount rate determination
lies in the analysis of empirical data that characterize cash assets recoupment in different regions and economy
branches.
|
