Discount rate in net present value (NPV) is the rate used to discount the future cash flows of a project back to the present day. This allows you to compare the profitability of different projects and make decisions about which ones to invest in.
The discount rate is an important factor in NPV analysis. A higher discount rate will result in a lower NPV, and a lower discount rate will result in a higher NPV. Therefore, it is important to choose a discount rate that is appropriate for the project being evaluated.