• 214 views | 3 messages Discussion: LEAP
    Topic: Discount RateSubscribe | Previous | Next
  • Anthony Tang 9/11/2023

    Hi. Does the annual production costs already cover the discount rate? I would like to calculate its Net Present Value but if discount rate is already considered in the simulations, then a simple summation will do.

    Thanks.
  • Charlie Heaps 9/11/2023
      Best Response

    Sorry - I do not understand the question. What do you mean by "cover"?
  • Anthony Tang 9/11/2023
      Best Response

    Hi. Apologies. I meant if the discount rate was used in the calculation of the annual production costs?

    I have to calculate for the present value of the production costs but I am not sure if should I simply get its sum due to the discount rate in LEAP simulation.

    Thank you.