HCH 3.80% 76.0¢ hot chili limited

Just a point of clarification, the discount rate is a rate you...

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    Just a point of clarification, the discount rate is a rate you use to calculate the Net Present Value ( NPV) of the project. It corresponds with an agreed method of rating alternate use of funds. In this case, it's probably expected inflation plus 5%. roughly in line with most other mining projects that use 8% for assessment and some quality ones that would use 7.5%.
    It's not the interest rate for financing that may run at 11% or the WACC (weighted average cost of capital that may run at 9%.
    Last edited by arsenic: 16/09/18
 
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