Discount factor and Promoter: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
Line 1: Line 1:
''Financial maths.''
1.  ''Marketing - agents.''


'''1.'''
A professional that organises a public event, especially music or sport.


(DF).


A discount factor is a number less than one, that we multiply a single future cash flow by, to work out its present value as:
2.  ''Marketing.''


PV = DF x future cashflow.
A customer that recommends a product or service to others.
 
 
The periodic discount factor is calculated from the periodic [[yield]] as:
 
DF = (1 + periodic yield)<SUP>-n</SUP>
 
 
Commonly abbreviated as DF(n,r) ''or'' DF<SUB>n,r</SUB>
 
Where:
 
n = number of periods.
 
r = periodic yield (or periodic cost of capital).
 
 
 
<span style="color:#4B0082">'''Example 1: Discount factor calculation'''</span>
 
Periodic yield or cost of capital (r) = 6%.
 
Number of periods in the total time under review (n) = 1.
 
 
Discount factor = (1 + r)<sup>-n</sup>
 
= 1.06<sup>-1</sup>
 
= 0.9434.
 
 
The greater the time delay, the smaller the Discount Factor.
 
 
<span style="color:#4B0082">'''Example 2: Increasing number of periods delay'''</span>
 
Periodic yield or cost of capital = 6%.
 
The number of periods delay increases to 2.
 
Discount factor = (1 + r)<sup>-n</sup>
 
= 1.06<sup>-2</sup>
 
= 0.8890.
 
''(A smaller figure than the 0.9434 we calculated previously for just one period's delay.)''
 
 
 
'''2.'''
 
Historically, the yield or cost of capital used for the purpose of calculating Discount Factors, as defined above. 
 
For example the 6% rate applied in definition 1. above.




== See also ==
== See also ==
* [[Annuity factor]]
* [[Agent]]
* [[Certificate in Treasury Fundamentals]]
* [[Consumer]]
* [[Certificate in Treasury]]
* [[Demand]]
* [[Compounding effect]]
* [[Market ]]
* [[Compounding factor]]
* [[Marketing]]
* [[Cumulative Discount Factor]]
* [[Net promoter score]]
* [[Day count conventions]]
* [[Penetration]]
* [[Expected credit loss]]
* [[Promotion]]
* [[Factors]]
* [[Retail]]
* [[Present value]]
* [[Supply]]
* [[Wholesale]]


[[Category:Cash_management]]
[[Category:The_business_context]]
[[Category:Liquidity_management]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Trade_finance]]

Latest revision as of 09:00, 29 March 2023

1. Marketing - agents.

A professional that organises a public event, especially music or sport.


2. Marketing.

A customer that recommends a product or service to others.


See also