Final answer:
The discount rate used in present value calculations for investment proposals is known as the hurdle rate, which is a benchmark that reflects opportunity costs and risk premiums.
Step-by-step explanation:
The discount rate used to determine the present value of an investment proposal is also known as the hurdle rate. The hurdle rate is a benchmark rate that investment proposals must meet or exceed to be considered viable. It reflects the cost of capital, including both the potential returns from other investments (opportunity cost) and any additional risk premium for the risk associated with the investment. This rate is distinguished from other metrics, as it specifically relates to the rate used for discounting future cash flows to their present value to make them comparable with current expenditures.