Beruflich Dokumente
Kultur Dokumente
Anthony Plumridge
OBJECTIVE FOR TODAY
The lower the discount rate the more you value future
consumption relative to present consumption
NPV = £-1.34m per 1000 TOTAL 65.00 35.00 15.40 14.60 -1.34
High rise Inflow Outflow Outflow Net flow Discount Net DCF
Year £M £m Capital £m
(Profit) Extern £m £m Factor £m
2004 2.50 15.00 0.13 -12.63 0.9091 -11.48
2005 2.50 0.13 2.37 0.8264 1.96
2006 2.50 0.13 2.37 0.7513 1.78
2007 2.50 0.13 2.37 0.6830 1.62
2008 2.50 0.13 2.37 0.6209 1.47
2009 2.50 0.13 2.37 0.5645 1.34
2010 2.50 0.13 2.37 0.5132 1.22
2011 2.50 0.13 2.37 0.4665 1.11
2012 2.50 0.13 2.37 0.4241 1.01
2013 2.50 0.13 2.37 0.3855 0.91
NPV = £0.93m per 1000 TOTAL 25.00 15.00 2.90 8.70 0.93
Conclusions
When all data on externalities is available and able to be
priced, then cost benefit analysis can be a very useful
tool to aid prioritisation and decision making for
sustainable development.
Economists
Roger Perman et al, (2011), Natural
Resource and Environmental Economics,
4th. edition Prentice Hall (economists)