TEA.15.5

$25.00

Discount Rates for Determining the Present Value of Different Types of Pecuniary Damages – 2016

Rosenberg, Joseph, Rob Schlegel, and Allen Needham.  2016.  “Discount Rates for Determining the Present Value of Different Types of Pecuniary Damages – 2016.”  The Earnings Analyst, 15:  61-75.

Description

Experts providing economic damages for litigation usually must provide future damage amounts or future cash flows in the form of present value. To make such a calculation, the expert must not only be aware of the mathematics in applying the appropriate formulas but the methods generally accepted by the courts. That expert should also be aware of other methods which could have been used and criticisms regarding those methods. This article provides a discussion of commonly used techniques and alternative methods for calculating present value in forensic situations. Although not comprehensive, it highlights areas of consensus and disagreement in the forensic economic community. Realizing that in most cases the expert decides on the discounting method to be used, this article provides information and resource data to assist experts in making such decisions.

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