Estimation of economic discount rate for practical project appraisal: The case of nepal

Abstract

Several possible approaches to the calculation of an economic discount rate are given: the macro approach; the micro approach for the manufacturing sector and for manufacturing public enterprise; cost of external borrowing; and exante rate of return in manufacturing industries. Previous estimates are also considered. The economic discount rate is a difficult parameter to calculate but the above approaches indicate that a value of 9% would be appropriate for Nepal. © 1987 Taylor & Francis Group, LLC.