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The lenders charge the Interest rate in the following two ways, i.e., Simple Interest and Compound Interest. Whereas the discount rate calculation is complex- Determining the present value of the future cash flows in the discounted cash flow analysis. Head To Head Comparison Between Discount Rat...
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In contrast, population and GDP growth have increased importance for both types of discount rates, with transaction-based discount rates displaying heightened sensitivities in comparison to appraisal-based discount rates. As these variables serve as indicators for future cash flow developments, it can ...
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