Imagine that the foundation on your house is cracking. If you repair it now before it gets worse it will only cost you $1000. If you put it off you expect that it will last 30 more years before you have to fix it. At that point, it will cost $3000 to fix it. Which of these choices will save you money in the long run if the discount rate is 3%? 6%? Show your work.

What other factors might influence this decision?

Based on the preceeding example, would a high or low discount rate favor immediate (and costly) action to mitigate climate change rather than waiting for future (even more costly action)?Explain your reasoning.