discount rates risk capital dear vince spent little bit longer putting together initial thoughts determining discount rates originally anticipated somewhat surprising really much academic work aware addresses issues briefly 1 think need come way define concept risk capital simultaneously appropriate discount rate 2 think important model enron opportunity cost capital changes time liquidity project affect value significant way opportunity cost capital changes time also likely relation duration discount rates depends factors generating enron opportunity cost capital 3 vague ideas possible simulations may help us quantify issues raised please take look attached document might find somewhat confusing give call later week discuss please let know free look forward hearing regards sheridan determining discount rates risky projects doc sheridan titman department finance college business administration university texas austin texas 78712 1179 512 232 2787 phone 512 471 5073 fax titman mail utexas edu