Northwest Seaport Alliance

Discount Rate and Net Present Value

March 5, 2020

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Item No.: 6A_suppDate of Meeting: Mar 5, 2020

Background

As borrowing rates have decreased the question has been asked if the discount rate used for financial analysis (currently 8.4%) should be reduced

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Introduction

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Primary Project Financial Considerations

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Secondary Project Financial Considerations

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Time vs Project Based Measures

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Discount Rate Methodology & History

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2020 What If Scenario

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Financial Standards Considerations

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Financial Standards Considerations

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Financial Standards: Recommendation

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