DISCOUNT RATE CALCULATION PROBLEMS WHEN MAKING INVESTMENT DECISIONS IN CRISIS ECONOMIC CONDITIONS |
4 | |
2009 |
scientific article | 336.6 | ||
229-231 | discount rate, discounting, evaluation of investment project efficiency |
When evaluating investment projects, every company that plans some investment activity faces the need to calculate discount rate. Contemporary economists differentiate between three main discount calculations methods: using the CAPM model, cumulative method and WACC method. Each of these methods has its own advantages and disadvantages. Thus, the problems of double accounting of economic risks and lack of benchmarks for risk-free rate are of special relevance. |
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