- This event has passed.
WCA Chapter Virtual Luncheon: Discount Rate Impacts on Private and Public Sector Capital Investment Valuation
September 24, 2025 @ 12:00 pm - 1:00 pm
Please join us for this month’s Washington Capital Area Chapter (WCAC) International Cost Estimating and Analysis Association (ICEAA) Luncheon:
SUBJECT: WCAC ICEAA September Luncheon: Discount Rate Impacts on Private and Public Sector Capital Investment Valuation
PRESENTED BY: George Bayer, Cobec, Inc.
TIME: September 24, 2025 | 12:00 to 1:00pm Eastern
SUMMARY:
The public and private sectors have different valuation techniques, motivations, and considerations when evaluating capital budgeting decisions. Understanding the difference between private and public sector capital investment analysis – discounted cash flow, cost/benefit considerations, nominal/real discounting, stakeholders, and cost of capital – helps decision-makers make better informed decisions. In 2023, the OMB updated its Circular A-94 with new nominal and real discount rates, significantly reducing the real discount rate for cost-benefit analyses. This could have unintended consequences in project valuation when including private sector stakeholders who traditionally have a higher cost of capital. In this paper, we explore the major differences in valuation, stakeholder motivations, and discount rates in public and private sector investment decisions and the impact of inflation. Understanding value drivers in both sectors is important for the cost estimating community and makes us more effective Finance professionals.
This briefing was originally presented at the ICEAA Professional Development & Training Workshop.
Speaker: George Bayer, Cobec, Inc.
George Bayer – George Bayer, a Senior Director at Cobec, develops innovative cost/benefit, supply chain, and investment analyses for major FAA capital investments. Prior to the FAA, he led economic analyses and DCF valuations for Power Generation at BP and ConocoPhillips and financial management at Disney. Mr. Bayer has a PMP certification, a BSBA in Finance and English from the University of Florida, and an MBA from the University of Texas at Austin in Corporate Finance.
Microsoft Teams Need help?
Meeting ID: 222 848 781 143 3
Passcode: 8fe9bz9k