Document Type

Closed Project

Publication Date

Fall 1993


Richard R. Deckro

Course Title

Engineering Economic Analysis

Course Number

EMGT 535


The paper is concerned with answering the following questions: What is the discount rate? Why are there differences between the discount rate in the private and the public sector? What is happening when a public company is privatized? The discount rate or interest rate symbolize the time value of the invested money. The discount rate in the public and in the private sector is different. In principle there is no difference between a nationalized company and privately owned company regulated by a public agency.


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