Which of the following best describes the discount rate?

مندرجہ ذیل میں سے کون سا ڈسکاؤنٹ ریٹ کی بہترین وضاحت کرتا ہے؟

Rate of inflation

Rate of return required by investors

Annual growth rate

Tax rate

The discount rate represents the minimum rate of return that investors require to justify investing in a project.

It taking into account the risk and opportunity cost of their investment.