Calculate the present value of $1 for a range of interest rates and times into the future. Use the accompanying table.

What do you conclude from the calculations? What do the numbers imply about

(a) to

(d) below? Typical investments (for example in infrastructure) involve outlaying money now (costs) and recuperating benefits into the future. Or, if there are ongoing costs in the future, then the future net cash flows (benefits minus costs)
are positive So any discussion of the impact of anything in the future typically refers to the future benefits. Consider the exercise in this light.

a. Costs and benefits into the distant future?

b. Hence, what about assumptions on lifespans?

c. Large percentage interest rates?

d. 0% per annum interest rate?