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A scientist is killed in a plane crash. It is anticipate that he could have earned $240,000 a year for the next 50 years. The attorney for he plaintiff's estate argues that the lost income should be discounted back to the present at 4%. The lawyer for the defendant's insurance company argues for a discounted rate of 8%. What is the difference between the present value of the settlement at 4% and 8%?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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