APPENDIX A DISCOUNT FACTORS FOR USE IN ECONOMIC ANALYSES WITHIN DEPARTMENT OF DEFENSE January 2007 through January 2008 Guidance prepared by TACOM Cost & Systems Analysis Directorate Using Appendix C of OMB Circular A-94: \"Discount Rates for Cost-Effectiveness, Lease-Purchase, and Related Analyses\" A-1 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 3 Year Project Project Constant Current Years Dollars ( 2.50% ) Dollars ( 4.90% ) 1 2 3 0.9877 0.9636 0.9401 0.9764 0.9308 0.8873 Constant Current Dollars ( 2.50% ) Dollars ( 4.90% ) 0.9756 0.9518 0.9286 0.9533 0.9088 0.8663 4 Year Project Project Constant Current Years Dollars ( 2.55% ) Dollars ( 4.90% ) 1 2 3 4 0.9875 0.9629 0.9390 0.9156 0.9764 0.9308 0.8873 0.8458 Constant Current Dollars ( 2.55% ) Dollars ( 4.90% ) 0.9751 0.9509 0.9272 0.9042 0.9533 0.9088 0.8663 0.8258 5 Year Project Project Constant Current Years Dollars ( 2.60% ) Dollars ( 4.90% ) 1 2 3 4 5 0.9872 0.9622 0.9378 0.9141 0.8909 0.9764 0.9308 0.8873 0.8458 0.8063 Constant Current Dollars ( 2.60% ) Dollars ( 4.90% ) 0.9747 0.9500 0.9259 0.9024 0.8796 A-2 0.9533 0.9088 0.8663 0.8258 0.7873 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 6 Year Project Project Constant Current Years Dollars ( 2.65% ) Dollars ( 4.90% ) 1 2 3 4 5 6 0.9870 0.9615 0.9367 0.9125 0.8890 0.8660 Constant Current Dollars ( 2.65% ) Dollars ( 4.90% ) 0.9764 0.9308 0.8873 0.8458 0.8063 0.7687 0.9742 0.9490 0.9245 0.9007 0.8774 0.8548 0.9533 0.9088 0.8663 0.8258 0.7873 0.7505 7 Year Project Project Constant Current Years Dollars ( 2.70% ) Dollars ( 4.90% ) 1 2 3 4 5 6 7 0.9868 0.9608 0.9356 0.9110 0.8870 0.8637 0.8410 Constant Current Dollars ( 2.70% ) Dollars ( 4.90% ) 0.9764 0.9308 0.8873 0.8458 0.8063 0.7687 0.7328 0.9737 0.9481 0.9232 0.8989 0.8753 0.8523 0.8299 A-3 0.9533 0.9088 0.8663 0.8258 0.7873 0.7505 0.7154 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 8 Year Project Project Constant Current Years Dollars ( 2.73% ) Dollars ( 4.93% ) 1 2 3 4 5 6 7 8 0.9866 0.9604 0.9348 0.9099 0.8857 0.8622 0.8392 0.8169 Constant Current Dollars ( 2.73% ) Dollars ( 4.93% ) 0.9762 0.9303 0.8866 0.8449 0.8052 0.7673 0.7312 0.6969 0.9734 0.9475 0.9223 0.8977 0.8739 0.8506 0.8280 0.8060 0.9530 0.9082 0.8655 0.8248 0.7860 0.7491 0.7138 0.6803 9 Year Project Project Constant Current Years Dollars ( 2.77% ) Dollars ( 4.97% ) 1 2 3 4 5 6 7 8 9 0.9864 0.9599 0.9340 0.9089 0.8844 0.8606 0.8375 0.8149 0.7930 Constant Current Dollars ( 2.77% ) Dollars ( 4.97% ) 0.9761 0.9299 0.8859 0.8440 0.8040 0.7660 0.7297 0.6952 0.6623 0.9731 0.9469 0.9214 0.8966 0.8724 0.8490 0.8261 0.8039 0.7822 A-4 0.9527 0.9076 0.8647 0.8237 0.7848 0.7476 0.7123 0.6786 0.6465 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 10 Year Project Project Constant Current Years Dollars ( 2.80% ) Dollars ( 5.00% ) 1 2 3 4 5 6 7 8 9 10 0.9863 0.9594 0.9333 0.9079 0.8831 0.8591 0.8357 0.8129 0.7908 0.7692 0.9759 0.9294 0.8852 0.8430 0.8029 0.7646 0.7282 0.6936 0.6605 0.6291 Constant Current Dollars ( 2.80% ) Dollars ( 5.00% ) 0.9728 0.9463 0.9205 0.8954 0.8710 0.8473 0.8242 0.8018 0.7799 0.7587 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 11 Year Project Project Constant Current Years Dollars ( 2.82% ) Dollars ( 5.01% ) 1 2 3 4 5 6 7 8 9 10 11 0.9862 0.9591 0.9328 0.9073 0.8824 0.8582 0.8346 0.8117 0.7895 0.7678 0.7468 0.9759 0.9293 0.8850 0.8427 0.8025 0.7642 0.7278 0.6931 0.6600 0.6285 0.5985 Constant Current Dollars ( 2.82% ) Dollars ( 5.01% ) 0.9726 0.9459 0.9200 0.8947 0.8702 0.8463 0.8231 0.8005 0.7786 0.7572 0.7365 A-5 0.9523 0.9069 0.8636 0.8224 0.7832 0.7458 0.7102 0.6763 0.6441 0.6133 0.5841 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 12 Year Project Project Constant Current Years Dollars ( 2.84% ) Dollars ( 5.02% ) 1 2 3 4 5 6 7 8 9 10 11 12 0.9861 0.9589 0.9324 0.9066 0.8816 0.8573 0.8336 0.8106 0.7882 0.7664 0.7452 0.7247 0.9758 0.9292 0.8847 0.8425 0.8022 0.7638 0.7273 0.6926 0.6595 0.6279 0.5979 0.5693 Constant Current Dollars ( 2.84% ) Dollars ( 5.02% ) 0.9724 0.9455 0.9194 0.8940 0.8693 0.8453 0.8220 0.7993 0.7772 0.7558 0.7349 0.7146 0.9522 0.9067 0.8633 0.8221 0.7828 0.7454 0.7097 0.6758 0.6435 0.6127 0.5835 0.5556 13 Year Project Project Constant Current Years Dollars ( 2.86% ) Dollars ( 5.03% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 0.9860 0.9586 0.9319 0.9060 0.8808 0.8563 0.8325 0.8094 0.7869 0.7650 0.7437 0.7230 0.7029 0.9758 0.9290 0.8845 0.8422 0.8018 0.7634 0.7269 0.6921 0.6589 0.6274 0.5973 0.5687 0.5415 Constant Current Dollars ( 2.86% ) Dollars ( 5.03% ) 0.9722 0.9452 0.9189 0.8933 0.8685 0.8443 0.8209 0.7980 0.7759 0.7543 0.7333 0.7129 0.6931 A-6 0.9521 0.9065 0.8631 0.8218 0.7824 0.7449 0.7093 0.6753 0.6430 0.6122 0.5828 0.5549 0.5284 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 14 Year Project Project Constant Current Years Dollars ( 2.88% ) Dollars ( 5.04% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0.9859 0.9583 0.9315 0.9054 0.8801 0.8554 0.8315 0.8082 0.7856 0.7636 0.7422 0.7214 0.7012 0.6816 0.9757 0.9289 0.8843 0.8419 0.8015 0.7630 0.7264 0.6916 0.6584 0.6268 0.5967 0.5681 0.5408 0.5149 Constant Current Dollars ( 2.88% ) Dollars ( 5.04% ) 0.9720 0.9448 0.9183 0.8926 0.8677 0.8434 0.8198 0.7968 0.7745 0.7528 0.7317 0.7113 0.6913 0.6720 A-7 0.9520 0.9063 0.8629 0.8215 0.7820 0.7445 0.7088 0.6748 0.6424 0.6116 0.5822 0.5543 0.5277 0.5024 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 15 Year Project Project Constant Current Years Dollars ( 2.90% ) Dollars ( 5.05% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0.9858 0.9580 0.9310 0.9048 0.8793 0.8545 0.8304 0.8070 0.7843 0.7622 0.7407 0.7198 0.6995 0.6798 0.6607 0.9757 0.9288 0.8841 0.8416 0.8012 0.7626 0.7260 0.6911 0.6579 0.6262 0.5961 0.5675 0.5402 0.5142 0.4895 Constant Current Dollars ( 2.90% ) Dollars ( 5.05% ) 0.9718 0.9444 0.9178 0.8919 0.8668 0.8424 0.8186 0.7956 0.7731 0.7514 0.7302 0.7096 0.6896 0.6702 0.6513 A-8 0.9519 0.9062 0.8626 0.8211 0.7817 0.7441 0.7083 0.6743 0.6419 0.6110 0.5816 0.5537 0.5270 0.5017 0.4776 REVISED DISCOUNT FACTORS--JANUARY 2007 END-OF-YEAR FACTORS MID-YEAR FACTORS 16 Year Project Current Project Constant Years Dollars ( 2.92% ) Dollars ( 5.06% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 0.9857 0.9577 0.9306 0.9042 0.8785 0.8536 0.8294 0.8058 0.7830 0.7608 0.7392 0.7182 0.6978 0.6780 0.6588 0.6401 Current Constant Dollars ( 2.92% ) Dollars ( 5.06% ) 0.9716 0.9441 0.9173 0.8913 0.8660 0.8414 0.8175 0.7943 0.7718 0.7499 0.7286 0.7080 0.6879 0.6683 0.6494 0.6310 0.9756 0.9286 0.8839 0.8413 0.8008 0.7622 0.7255 0.6906 0.6573 0.6257 0.5955 0.5669 0.5396 0.5136 0.4888 0.4653 A-9 0.9518 0.9060 0.8624 0.8208 0.7813 0.7437 0.7078 0.6738 0.6413 0.6104 0.5810 0.5530 0.5264 0.5010 0.4769 0.4539 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 17 Year Project Project Constant Current Years Dollars ( 2.94% ) Dollars ( 5.07% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 0.9856 0.9575 0.9301 0.9036 0.8778 0.8527 0.8283 0.8047 0.7817 0.7594 0.7377 0.7166 0.6961 0.6763 0.6569 0.6382 0.6200 0.9756 0.9285 0.8837 0.8411 0.8005 0.7618 0.7251 0.6901 0.6568 0.6251 0.5949 0.5662 0.5389 0.5129 0.4882 0.4646 0.4422 Constant Current Dollars ( 2.94% ) Dollars ( 5.07% ) 0.9714 0.9437 0.9167 0.8906 0.8651 0.8404 0.8164 0.7931 0.7704 0.7484 0.7271 0.7063 0.6861 0.6665 0.6475 0.6290 0.6110 A-10 0.9517 0.9058 0.8621 0.8205 0.7809 0.7432 0.7074 0.6732 0.6408 0.6098 0.5804 0.5524 0.5257 0.5004 0.4762 0.4533 0.4314 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 18 Year Project Project Constant Current Years Dollars ( 2.96% ) Dollars ( 5.08% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0.9855 0.9572 0.9297 0.9029 0.8770 0.8518 0.8273 0.8035 0.7804 0.7580 0.7362 0.7150 0.6945 0.6745 0.6551 0.6363 0.6180 0.6002 0.9755 0.9284 0.8835 0.8408 0.8001 0.7614 0.7246 0.6896 0.6563 0.6245 0.5943 0.5656 0.5383 0.5122 0.4875 0.4639 0.4415 0.4201 Constant Current Dollars ( 2.96% ) Dollars ( 5.08% ) 0.9713 0.9433 0.9162 0.8899 0.8643 0.8394 0.8153 0.7919 0.7691 0.7470 0.7255 0.7047 0.6844 0.6647 0.6456 0.6271 0.6090 0.5915 A-11 0.9517 0.9056 0.8619 0.8202 0.7805 0.7428 0.7069 0.6727 0.6402 0.6093 0.5798 0.5518 0.5251 0.4997 0.4756 0.4526 0.4307 0.4099 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 19 Year Project Project Constant Current Years Dollars ( 2.98% ) Dollars ( 5.09% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 0.9854 0.9569 0.9292 0.9023 0.8762 0.8509 0.8262 0.8023 0.7791 0.7566 0.7347 0.7134 0.6928 0.6727 0.6533 0.6344 0.6160 0.5982 0.5809 0.9755 0.9282 0.8833 0.8405 0.7998 0.7610 0.7242 0.6891 0.6557 0.6240 0.5938 0.5650 0.5376 0.5116 0.4868 0.4632 0.4408 0.4194 0.3991 Constant Current Dollars ( 2.98% ) Dollars ( 5.09% ) 0.9711 0.9430 0.9157 0.8892 0.8634 0.8385 0.8142 0.7906 0.7678 0.7455 0.7240 0.7030 0.6827 0.6629 0.6437 0.6251 0.6070 0.5895 0.5724 A-12 0.9516 0.9055 0.8616 0.8199 0.7802 0.7424 0.7064 0.6722 0.6397 0.6087 0.5792 0.5511 0.5244 0.4990 0.4749 0.4519 0.4300 0.4092 0.3893 REVISED DISCOUNT FACTORS--JANUARY 2007 MID-YEAR FACTORS END-OF-YEAR FACTORS 20-to-30 Year Project Project Constant Current Years Dollars ( 3.00% ) Dollars ( 5.10% ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0.9853 0.9566 0.9288 0.9017 0.8755 0.8500 0.8252 0.8012 0.7778 0.7552 0.7332 0.7118 0.6911 0.6710 0.6514 0.6324 0.6140 0.5961 0.5788 0.5619 0.5456 0.5297 0.5142 0.4993 0.4847 0.4706 0.4569 0.4436 0.4307 0.4181 0.9754 0.9281 0.8831 0.8402 0.7994 0.7607 0.7237 0.6886 0.6552 0.6234 0.5932 0.5644 0.5370 0.5109 0.4861 0.4625 0.4401 0.4187 0.3984 0.3791 0.3607 0.3432 0.3265 0.3107 0.2956 0.2813 0.2676 0.2546 0.2423 0.2305 Constant Current Dollars ( 3.00% ) Dollars ( 5.10% ) 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.5375 0.5219 0.5067 0.4919 0.4776 0.4637 0.4502 0.4371 0.4243 0.4120 A-13 0.9515 0.9053 0.8614 0.8196 0.7798 0.7420 0.7060 0.6717 0.6391 0.6081 0.5786 0.5505 0.5238 0.4984 0.4742 0.4512 0.4293 0.4085 0.3886 0.3698 0.3518 0.3348 0.3185 0.3031 0.2884 0.2744 0.2611 0.2484 0.2363 0.2249