diskonttovirheen
Diskonttovirhe, often translated as discount error or discounting error, refers to a conceptual mistake made in financial analysis or economic forecasting where the value of future cash flows is not properly adjusted for the time value of money. This adjustment is typically done through a process called discounting, which uses a discount rate to reduce future amounts to their present-day equivalent.
The core of the discount error lies in failing to acknowledge that money available today is worth
In practice, a discount error might manifest as simply summing up all future revenues or profits without