The interest rate used in cash flow analysis to take into account the time value of money. Companies set a discount rate ...

The interest rate used in cash flow analysis to take into account the time value of money. Companies set a discount rate based on their business and investment environment. Forrester assumes a yearly discount rate of 10% for this analysis. Organizations typically use discount rates between 8% and 16% based on their current environment. Readers are urged to consult their respective organization to determine the most appropriate discount rate to use in their own environment.