Risk-adjusted discount rates (RADRs) are the risk-adjustment factors that represent 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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Risk-adjusted discount rates (RADRs) represent the discount rate used in the discounted cash flow analysis to adjust for the risk of an investment. It is not a percentage of estimated cash inflows that investors would be satisfied to receive.

Risk-Adjusted Discount Rates (RADRs) Are the Risk-Adjustment Factors That Represent