The Research On The Discounting Rate's Setting In The Economic Evaluation Of Investment Projects

The discounting rate which acts as the basis of comparison and calculation in evaluating the investment result produces a directly effect on the conclusion of the economic evaluation of investment result and an indirectly effect on the achievement of the investment result. So then, carrying about the research on the discounting rate's setting is of both academic and practical value.This paper synthesizes the theories of techno-economics and other methods and applies the syllogism to analyze how to set the discounting rate rationally in the economic evaluation of investment result. First, it looks into the backgrounds and the trains, then commentaries the theories of the discounting rate's setting; Second, based on an summary of the discounting rate's present conditions, it makes a systematic research on the matters and causes exiting in the process of setting the discounting rate from the angles of calculating, selecting and adjusting; Grounded in all this theories and analysis, this paper concludes that dynamic method and point should be adopted in setting the discounting rate rationally in the economic evaluation of investment effects and designs an program to set the discounting rate . It then discusses how to adjust the discounting rate through an insight into the loaning and price variation risk, and makes an analysis on the social discounting rate.