Which of the following is an example of discounting?
A) A recent environmental disaster at a nuclear power company causes concern about the safety of nuclear energy.
B) The demographics of a town show that 90% of the residents are over the age of 60. The town wants to implement a plan to reduce greenhouse emissions that will incur high financial costs and will take at least 25 years to show results.
C) A town has the choice of spending $3,000 with the possibility of earning over $10,000 if they decide to build a large solar farm in the next month.
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

Discounting involves evaluating the present value of future benefits or costs. In option B, the town is considering a plan with high costs now for benefits that will only be realized in the future, which involves discounting future benefits against present costs.

Which of the Following Is an Example of Discounting