Business A-Level
Discount Factor
What Discount Factor means in Business A-Level, as defined for Eduqas.
Definition of Discount Factor
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Reference: Eduqas
A factor used to convert a future cash flow into its present value. The factor is determined by the discount rate and the number of years.
Topics that use Discount Factor
- Component 2: Investment appraisal (Eduqas A-Level)
Related terms
- investment appraisal
- Net Present Value (NPV)
- payback period
- Time Value of Money
- Accounting Rate of Return (ARR)
Using Discount Factor in the exam
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