LT Plan Discount Rate

Units:	%
Default Value:	0
Validation Rule:	≥0
Description:	Discount rate.
Detail:

The objective function of LT Plan minimizes the Net Present Value (NPV) of all future costs. The Discount Rate is used to translate costs incurred in future years to present day value. Typical values are in the range 8-15%.

The discount rate should be entered as a percentage not a decimal. For example if you want a discount rate of 8%, enter the number 8, not 0.08.

Note that the starting date in the planning horizon is considered to be in "year 0" and the discount rate will be applied from "year 1".

See also:

• Capacity Expansion Planning
• Facility WACC