The Stern Report seeks to discount $6,000 billion of annual benefits occurring 100 years from now....
The Stern Report seeks to discount $6,000 billion of annual benefits occurring 100 years from now. If these are discounted at a rate of 2%, the present discounted value of the benefits will be approximately:
Homework Answers
ANSWER:
Present value = annual benefits(p/f,i,n)
pv = 6,000(p/f,2%,100)
pv = 6,000 * 0.13803
pv = 828.2
so the present discounted value is $828.2 billion
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