Suppose expanded use of nuclear power would involve a 5% chance of problems causing the release of enough radiation to kill 10 people and an additional 1% chance of the release of enough radiation to kill 500 people. Assume unidentified humans such as those who might die as the result of nuclear disasters are found to be worth $9 million each. If the discount rate is zero, what is the expected value of the human loss from nuclear expansion?
Suppose instead that the discount rate is 10% and the expanded use of nuclear power would certainly kill 100 people in 20 years. What is the present value of the human loss due to nuclear expansion?

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The Answer of Suppose expanded use of nuclear power would involve a 5% chance of problems causing the release of enough radiation to kill 10 people and an additional 1% chance of the release of enough radiation to kill 500 people. Assume unidentified humans such as those who might die as the result of nuclear disasters are found to be worth $9 million each. If the discount rate is zero, what is the expected value of the human loss from nuclear expansion?
Suppose instead that the discount rate is 10% and the expanded use of nuclear power would certainly kill 100 people in 20 years. What is the present value of the human loss due to nuclear expansion?

Suppose Expanded Use of Nuclear Power Would Involve a 5