Guidance
FCERM grant-in-aid: discount rates, price indices and capping
Apply discount rates, price indices and capping in economic appraisals for risk management authorities (RMAs) and project teams.
Documents
Details
This is guidance to support the appraisal of FCERM projects. You should have read the FCERM appraisal guidance manual before using this document.
You can use this guidance to apply the discount rates defined in the Treasury Green Book. Discount rates are used to calculate the present value of a future sum of money. There are 2 rates you can use, depending on the aspect of your FCERM project that you are discounting.
It also explains how to apply price indices and capping in economic appraisals.