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Real Discount Rate

Sympheny uses a concept called the real discount rate. This rate considers the effect of inflation, allowing a more accurate financial representation. Sympheny calculates this real discount rate based on the interest rate and inflation rate you provide. With this real discount rate in hand, Sympheny can determine discount factors and convert the total cost (represented by the net present value) into an annual cost, giving you a clearer picture of the ongoing financial impact.

The real discount rate is calculated using the following equation:

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