# How to incorporate discount factor in an SDDP.jl model?

**URL:** <https://discourse.julialang.org/t/how-to-incorporate-discount-factor-in-an-sddp-jl-model/124598>\
**Category:** Finance and Economics\
**Tags:** question\
**Created:** [January 9, 2025, 4:48pm UTC](https://discourse.julialang.org/t/how-to-incorporate-discount-factor-in-an-sddp-jl-model/124598 "2025-01-09T16:48:35Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![Engr\_Moiz\_Ahmad](https://sea2.discourse-cdn.com/julialang/user_avatar/discourse.julialang.org/engr_moiz_ahmad/32/214621_2.png) [@Engr\_Moiz\_Ahmad](https://discourse.julialang.org/u/Engr_Moiz_Ahmad)\
**Post date:** [January 9, 2025, 4:48pm UTC](https://discourse.julialang.org/t/how-to-incorporate-discount-factor-in-an-sddp-jl-model/124598/1 "2025-01-09T16:48:35Z")

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I am working on a research paper for which I am using SDDP.jl to solve a multi-stage stochastic optimization problem. In this regard, for sensitivity analysis, I need a discount factor. However, I cannot figure out the way to utilize it in SDDP.jl.