Discounting

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A mathematical operation that aims to make monetary (or other) amounts received or expended at different times (years) comparable across time. The discounter uses a fixed or possibly time-varying discount rate from year to year that makes future value worth less today (if the discount rate is positive). The choice of discount rate(s) is debated as it is a judgement based on hidden and/or explicit values.

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Corporate Finance Institute® Discounting