Assume a project will result in benefits of $1 trillion in 500 years by avoiding an environmental disaster that otherwise would occur at that time.

1. Compute the present value of these benefits using the following time-declining discount rate schedule: 3.5 percent for years 1-50; 2.5 percent for years, 51-100; 1.5 percent for years 101-200; 0.5 percent for years 201-300; and 0.2 percent thereafter. How does your answer compares to (b)? is the difference significant enough as to be important?
2. Compute the present value of these benefits using the following time-declining discount rate schedule: 3.5 percent for years 1-50; 2.5 percent for years, 51-100; 1.5 percent for years 101-200; 0.5 percent for years 201-300; and 0.2 percent thereafter. How does your answer compares to (Question 1)? is the difference significant enough as to be important?