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discount rate

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

In accounting this is the rate used to discount future cash flows in order to determine their present value.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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