Formula discount rate
The hurdle rate is also used to discount a project's cash flows in the calculation of net You can calculate the discount factor over time by using the formula: D Discount Factor Calculation Formula. The discount factor is calculated in the following way, where P(T) is the discount factor, r the discount rate, and T the Type: Input Variable Units: % Symbol: i The real discount rate is used to convert between one-time costs and annualized costs. HOMER calculates the annual