Final answer:
The discount rate can be calculated using the formula: Discount Rate = 1 / (1 + Discount Factor). Given a discount factor of 0.9009, the discount rate is approximately 52.56%.
Step-by-step explanation:
The discount rate is the interest rate used to determine the present value of future cash flows. It represents the rate at which future cash flows are discounted to their present value.
To calculate the discount rate, you can use the formula:
Discount Rate = 1 / (1 + Discount Factor)
Given that the discount factor is 0.9009, substitute it into the formula:
Discount Rate = 1 / (1 + 0.9009) = 1 / 1.9009 = 0.5256 (rounded to four decimal places)
Therefore, the discount rate is approximately 52.56%.