a) is TRUE and b) and c) are FALSE.

Could someone please explain why these are the correct answer?

1%. In the 2006 Stern Review, Professor Nicholas Stern used the discount rate of 1.4% (1.3% due to technological progress plus 0.1% for the possibility of extinction). Professor William Nordhaus argued that the impatience of citizens should be additionally considered, estimated to be around 3.0% per annum, and suggested an overall discount rate of 4.3%. The following table shows the present values of a $100 payment in future, discounted at the two rates. Based on this information, which of the following statements is / are true? Discount rate (%) 0 l 10 50 100 Years in the future 0.0 $100.00 $100.00 $100.00 $100.00 $100.00 1.4 $100.00 $98.62 $87.02 $49.49 $24.90 4.3 $100.00 $95.88 $65.64 $12.18 $1.48 (a) Nordhaus would approve a project that saves the generation in 50 years' time $100 in environmental damages if it costs less than $12.18 today. T (b) Both Stern and Nordhaus/consider future generations as less worthy of our concern than the current generation. 1.. (c) Nordhaus's estimation of the discount rate is more correct than Stern's. F