Changes

==Discount rates==

==Discount rates==

[[File:table_r_the-time-value-of-money_1.png|thumb|Present value factors]]

[[File:table_rose_time-value-of-money_1.jpg|thumb|Present value factors]]

The table shows present value factors at different interest rates (or ''discount rates'') in future years. Some corporations use a discount rate approximately equal to the corporate cost of capital, or the present inflation rate, plus an additional 3-4% (which represents "real" bank interest). At the time this paper was written, this gave an 8-9% [[corporate discount rate]]. During this time, however, most U.S. companies were using a discount rate of 12-15%, and international firms were using 15-18%.

The table shows present value factors at different interest rates (or ''discount rates'') in future years. Some corporations use a discount rate approximately equal to the corporate cost of capital, or the present inflation rate, plus an additional 3-4% (which represents "real" bank interest). At the time this paper was written, this gave an 8-9% [[corporate discount rate]]. During this time, however, most U.S. companies were using a discount rate of 12-15%, and international firms were using 15-18%.