Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

Understand the differences between the prime rate and discount rate, how each affects borrowing costs, consumer loans, and the role of the Federal Reserve.

Forbes contributors publish independent expert analyses and insights. James Broughel is an economist focused on the economics of regulation. In the complex world of regulatory cost-benefit analysis, ...

In regulatory cost benefit analysis the discount rate translates future value to present terms. Regulatory costs, such as investments in pollution control equipment or redesigning nutrition labels, ...

We show that firms' nominal required returns to capital (i.e., their discount rates) are sticky with respect to expected inflation. Such nominally sticky discount rates imply that increases in ...