The discount rate used in net present value calculations is the company's minimum rate of return.

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The discount rate used in net present value calculations represents the company's minimum rate of return, also known as the hurdle rate. This is the rate that the company expects to earn on a project, and it is used to discount future cash flows to their present value. By comparing the present value of cash inflows with the initial investment, the company can determine whether or not the project is worthwhile.

The Discount Rate Used in Net Present Value Calculations Is