Investment Appraisal

When making a decision about a long term investment we need to apply a discount rate to reflect the changing value of money over time.

This principle applies also in the context of awarding sums of compensation as in this article. The money required to provide a return of a certain level has to take in to account a discount rate.

here we see a change in the discount rate required to ensure that compensation is sufficient. Essentially it means a need for larger awards.

https://www.out-law.com/en/articles/2017/march/uk-and-scottish-governments-begin-review-of-discount-rate-calculation-method/

About Jonathan Rooks

Jonathan is an accountant who specialises in Management Accounting, the running of a business. He works with entrepreneurs to help them increase income and reduce costs.
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