IntroductionIn the discounted cash flow (DCF) framework, the worth of a capital asset (henceforth simply asset) is computed by discounting its expected future cash flows at an appropriate rate (discount rate) that expresses the cost of capital. As described in related textbooks (e.g., especially [20,32,33] and also [17,18,23,31,36]), the computation can typically take one of two forms: discounting discrete cash flows (i.e., cash flows occurring at equally spaced time periods, typically years) at a discrete discount rate (i.e., the effective rate for one period) or discounting a continuous cash flow stream (i.e., cash flow is a continuous function of time) at a continuous discount rate (i.e., the rate assuming an infinitesimal period of capitalization). Mathematically, the former approach is defined by Eq. (1), and the latter is defined by Eq. (2). We assume, as usual, an identical discount rate across periods.