SAO PAULO, July 14 (Reuters) - The Brazilian government on Tuesday unveiled the discount rate that will be used to calculate internal rate of returns on as many as 29 port operation licenses that will be auctioned off to investors this year.
In a statement, the finance ministry update the calculation for the so-called weighted average cost of capital for the upcoming port auctions to an annual 10 percent. The internal rate of return for the projects might differ from the estimate of the discount rate, or WACC, the statement added.
The WACC is the rate that a company or project is expected to pay on average to debt and shareholders to finance itself. (Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama)