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Business microlearning from Japan’s No1 MBA

Foundation

Discount Rate

5 minutes (1 section)

Accounting and Finance

Course Description

A dollar today is worth more than a dollar tomorrow. This is the basic concept of the time value of money, which goes hand in hand with discount rates.

A discount rate allows you to calculate what the value of something you are promised in the future is worth today. It is one of the very basic concepts that must be mastered in the practice of corporate finance.

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