What is discount rate?
The risk-adjusted rate used to bring future cash flows to present value in a DCF. Reflects the time value of money plus a premium for the risk and timing of those cash flows.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.