Homework Answers
If Discount rate is 0 percent
it's better to pay $50 billion dollar today
If discount rate is 2%
Present value of payment at 50 year = Amount X PVIF @2% at 50 Year
($1000,000,000,000 X 0.37153)= $371,530,000,000
Presetn Value of payment today= $50,000,000,000
Its' better to pay today.
If discount rate is 4%
Present value of payment at 50 year = Amount X PVIF @2% at 50 Year
($1000,000,000,000 X 0.14071)= $140,712,615,333
Presetn Value of payment today= $50,000,000,000
Its' better to pay today.
If discount rate is 6%
Present value of payment at 50 year = Amount X PVIF @2% at 50 Year
($1000,000,000,000 X 0.0543)= $543,00,000,000
Presetn Value of payment today= $50,000,000,000
Its' better to pay after 50 year
If discount rate is 8%
Present value of payment at 50 year = Amount X PVIF @2% at 50 Year
($1000,000,000,000 X 0.0213)= $213,00,000,000
Presetn Value of payment today= $50,000,000,000
Its' better to pay after 50 year
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reduce their contributions to climate change. Changes in the home,
yard, and on the road can reduce greenhouse gases and save money.
EPA notes 16 simple steps individuals can take to reduce greenhouse
gas emissions, summarized below.
1....
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