This practice aid has been designed to provide recommended guidance to assist experts to evaluate the time value of money in both valuation and economic damages analyses. Courts, however, have offered little guidance with respect to acceptable methods to identify and implement an appropriate discount rate to accomplish this objective—particularly in the economic damages context. Moreover, the published opinions in this area are frequently fact-specific and are not always consistent (see chapter 7, "Example Case Law," in this practice aid for a case law summary). Consequently, experts are called upon to interpret and apply the case circumstances using an appropriate methodology.
Access the Discount Rates, Risk and Uncertainty in Economic Damages practice guide in the FVS Online Professional Library.
Chapter 1 – Introduction
Chapter 2 – Overview of Time Value of Money
Chapter 3 – Financial Principles for Estimating Discount Rates
Chapter 4 – Present Value and Discount Rates Within a Litigation Context
Chapter 5 – Accounting for Risk in a Damages Calculation
Chapter 6 – Uncertainty and Consideration of Risk in Calculations of Damages
Chapter 7 – Example Case Law
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