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Avtomobil'. Doroga. Infrastruktura.

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REVIEW OF THE GENERAL METHODS OF DETERMINATION OF INDIVIDUAL DISCOUNT RATE

Abstract

In this article we summarise the main methods used in practice in determination of the individual discount rate i.e. the desired rate of return for investors from investing in a specific investment project. These include the extended Capital Asset Pricing Model (CAPM) and the method of arbitrage pricing. In addition, we lay down recommendation about the uses of described methods. We conclude that when using any of the described methods for obtaining the individual discount rate, its main economic sense persists irrespective of the method used.

About the Authors

Sergey P. Bochkov
MADI
Russian Federation
Ph. D., associate professor


Anton S. Bochkov
University of Edinburgh
United Kingdom
student


References

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ISSN 2409-7217 (Online)