Negative discount rate

Hey there! I found this forum and thought this would probably the best place to pose my question;

I am calculating the discount rate for 4 different revenue streams:

Initial costs / Revenue 1st yr / Revenue 2nd yr / 3rd yr / 4th yr Discount rate
1) -100 100 100 100 100 92.76%
2) -800 100 100 100 100 -22.93%
3) -15 100 100 100 100 666.47%
4) -1500 100 100 100 100 -37.76%

It seems to be that there there is no upper limit for an positive discount rate (alternative 3). For a negative discount rate (see alternative 2 and 3), however, it seems that there is no possibility for getting a negative discount flow below 100% --> am I right in my assumption or do I miss anything here?

Any help is much appreciated!!!

Hello!

Did you get an answer to this post? I can give you a very full one, having worked a lot on negative discount rates and internal rates of return, but if someone else has solved your problem, I'll carry on with other aspects of this work.

With best wishes,

Colin Price

By the way, if you want to alert me to any extension of this thread, e-mail c.price@bangor.ac.uk: otherwise I may neglect to look at the forum.

Colin Price

Dear Russell,

Thanks for the welcome. Edit out my e-mail address - for security/antispamming, or is it just forum protocol? I'd like the original poster to get back to me if he hasn't had any solutions, and being new to the site I haven't got round to editing my profile.

WBW

Colin