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Fill and Sign the This Problem the Applicable Present Value and Future Chegg Form

Fill and Sign the This Problem the Applicable Present Value and Future Chegg Form

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MPI 25.92 Damages - Present Value Calculation You can determine the present cash value of future economic damage by use of the present value table which is attached. To use this table, you should take the following steps: 1. Determine the number of years from now that the future economic loss will continue, and locate that figure on the left-hand column of the table. 2. Choose a fair rate of interest on reasonably safe investments, and use the column headed up by that percentage rate for your further calculations. 3. Using the number of years and percentage rate of investment which you have determined, next ascertain the present value factor from the table. 4. Multiply the factor so determined times the amount of economic loss you determine will occur in each year. The result will be the present amount which, invested at the determined rate of investment return, will pay at the end of each year the determined annual amount for the number of years you find that the loss will continue, and it will leave nothing at the end of that period. The following is only an example to assist you in the proper use of the table. It is not to be construed as a suggestion by the court as to what numbers you should apply. For sake of example, assume that future economic losses will continue for 10 years.Also assume that a reasonable safe rate of investment return is determined to be 6%. Read across from the 10-year entry to the 6% column, and you find that the present value factor is 7.3601. Then assume that you find the future economic loss for each of those 10 years to be $10,000.00. Now simply

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