RRCM Build Up

The RRCM Build Up worksheet derives a discount rate from the risk components calculated in the other Risk Rate Component Model worksheets. Once you have completed the other worksheets, follow these steps:

Step01Enter the Safe Rate of Return

The safe rate of return appears in the upper right corner of the worksheet, in the row labeled "Safe Rate of Return".

Step02Weight the Risk Rate Components

You can overwrite the weights calculated for each risk rate component. Enter the weights in the blue cells of the column labeled "Weight".

Step03Set the Selected Rate

The selected rate appears in the lower right corner of the worksheet, in the row labeled "Selected". You can overwrite the calculated rate by editing the cell.