Discounted cash flow (DCF) and net present value (NPV) analyses have long been part of the financial analyst’s toolbox. By deciding on a discount rate and using that discount rate in some exponential equations it is easy to argue that future generations will be richer than us and can pay for more in their future, so we can spend wantonly now. Or that something horribly expensive is really quite cheap if we make a very small change in the discount rate. This conference will examine the implications of discount rates on society’s long-term decisions such as health, education, infrastructure, and the environment.
The group will discuss Dr Nick Goddard's overview of discount rates. "Uses and Abuses of Discount Rates: A Primer for the Wary" which was published as a free-to-download Long Finance publication in September 2015 (press release).
Uses and Abuses of Discount Rates: A Primer for the Wary
by Dr Nick Goddard
September 2015, 43 pages
This event is free to attend but registration is required. Registration will open towards the end of 2015.