Selecting a Discount Rate or MARR

  • Rosalie T. Ruegg
  • Harold E. Marshall

Abstract

The discount rate, or MARR,1 imposes a condition of minimum profitability which a project or project increment must meet to qualify for acceptance. Because it affects whether a project will be accepted or rejected and how much will be spent on it, the value of the discount rate is a key ingredient in an economic evaluation. If it is set too high, some projects which are economic will be rejected; if too low, some projects which are uneconomic will be accepted.

Keywords

Discount Rate Market Rate Capital Asset Price Model Weighted Cost Public Project 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1990

Authors and Affiliations

  • Rosalie T. Ruegg
  • Harold E. Marshall

There are no affiliations available

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