<human>:  Why is the discount rate used in the discounted cash flow model?
<bot>: The discount rate is used to reflect the time value of money. The discount rate is the interest rate that investors would require to make a project worth doing. For example, if you were to invest $1,000 in a project that would return $1,000 in 10 years, you would need to be paid an interest rate of 10% to make the project worthwhile.