Definition:
A discount is a reduction. A discount in value means a reduction in value. The term "discounted value" is used to refer to a reduction taken by a buyer to account for the reduced expectation of return from that asset.
For example, a factoring company may discount the value of accounts receivable because they cannot expect to receive full value on the receivables. The discount is determined by looking at the age of the receivables and the type of receivable, to give the factor an estimate of the difficulty of collecting.
Pronunciation: The buyer discounted the office furniture in his estimate, since it was old and worn.
