Ralph North has been employed by the Citrus Company for fifteen years. He is a fork lift operator who has worked with various machines during his tenure with the company. On January 2, 2021, he was operating company equipment that malfunctioned while he was using it. Ralph was thrown to the floor and severely injured his back when the pallet he was carrying fell on him. Ralph has had some back trouble before and now he claims that his back has been permanently impaired and he has trouble standing. An occupational therapist will testify on the plaintiff's behalf that he is no longer able to work and that he is permanently disabled and unable to work for the rest of his life. Ralph further alleges that his back causes him constant pain and he is unable to perform many of his duties around the house and garage that he was able to perform before the injury.

Assume some facts about Ralph's employment, income, and life expectancy. Then prepare an Excel worksheet of potential damages similar to Figure 12.6 in your textbook. Next, estimate the present value of your estimates as add this to your worksheet. Review the worksheet of at least one other student and ask questions that Ralph might be asked in a damages phase of a trial.

calculation looks into the future, the probability of life decreases, and the damage amounts reect this change. The probability of life amounts are entered in the damage model as shown in Figure 12.6. Figure 12.6 Damages Computed by Deiendant's Expert After Probability of Life Adjustment Jeff Evans's damages Salary FICA Health Insurance Minimum Wages Earnings of Fired Employee Total Damages Present Value Factor Present Value $52,629 of Damages Probability of Life Factor 1.000000 Present Value $52,629 of Damages with Probability of Life Total Damages $55,998 $57,209 0.942 0.924 $52,636 $52,750 $52,861 0.988548 $52,'| 46 0.984253 4.725 1 5,742 {19,6781 $53,364 $52,524 In summary, if Lakeside County's expert does not adjust for life expectancy, the present value of total damages is $527,828 (Figure 12.5); when adjusted for life expectancy, the present value of total damages is $522,423 (Figure 12.6). Thus, the amount of decrease in the estimated economic damages after