Discount Rate – The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows. You are required to have a number filled in here.
This is the rate determined by your institution to use for Net Present Value (NPV) calculations. NPV is calculated on the Project Detail page. Your institution may have a set discount rate that is used when calculating NPV for other investments, so it is best to ask your institution’s business or finance office for the standard discount rate used. It is typically between 5 percent and 8 percent.
