Proper valuation of the costs and benefits requires recognition that monetary value today is worth more...

Proper valuation of the costs and benefits requires recognition that monetary value today is worth more than the future. Therefore, future costs and benefits need to be discounted. What is the value of $100,000 of benefits that arent realized until 10 years from today if the appropriate discount rate is 4.5%?

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Expert Solution

using formula P = F/(1+i)^t

Present value = 100000 / (1+0.045)^10

= 100000 / (1.045)^10

= 64392.77

Rahul Sunny answered 2 years ago

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