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Discounting - Wikipedia
In finance, discounting is a mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee. Essentially, the party that owes money in the present purchases the right to delay the payment until some future date. This transaction is based on the … See more
If we consider the value of the original payment presently due to be P, and the debtor wants to delay the payment for t years, then a market rate of return denoted r on a similar investment asset means the future value of P is See more
The discount rate which is used in financial calculations is usually chosen to be equal to the cost of capital. The cost of capital, in a financial market equilibrium, will be the same as the market See more
For discounts in marketing, see discounts and allowances, sales promotion, and pricing. The article on discounted cash flow provides … See more
The discount factor, DF(T), is the factor by which a future cash flow must be multiplied in order to obtain the present value. For a zero-rate (also called … See more
Wikipedia text under CC-BY-SA license Discounts and allowances - Wikipedia
Discount - Wikipedia
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