The U.S. Office of Management and Budget (OMB) recommends that the government use different discount rates for

Question:

The U.S. Office of Management and Budget (OMB) recommends that the government use different discount rates for public investments than for the sale of government assets. For public investments, the OMB suggests a discount rate that reflects the historical pretax rate of return on private investments, while for the sale of government assets, the OMB recommends using the cost of government borrowing as a discount rate. Why might the OMB make this distinction?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: