Question
Choose the correct statement about discounting. Group of answer choices - The conclusion of a cost-benefit analysis can be highly sensitive to the choice of
Choose the correct statement about discounting.
Group of answer choices
- The conclusion of a cost-benefit analysis can be highly sensitive to the choice of the discount rate.
- The EPA uses a discount rate of zero in its cost-benefit analysis of some policy proposals.
- All of the other statements are correct. The lower the discount rate, the lower the present value placed on costs and benefits that will be realized in the future.
- The higher the discount rate, the higher the present value placed on costs and benefits that will be realized in the future.
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