The risk-adjusted discount rate (RADR) is the risk adjustment factor that represents the percent of estimated cash inflows that investors would be satisfied to receive for certain rather than the cash inflows that are possible for each year.

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The definition of RADR is not accurate. The risk-adjusted discount rate (RADR) is the rate used in capital budgeting to discount the expected future cash flows of a project or investment to account for the risk of those cash flows not materializing. It represents the minimum return that investors would require to undertake the project or investment, given its level of risk.

The Risk-Adjusted Discount Rate (RADR) Is the Risk Adjustment Factor