Discounting Liabilities Using the Present Value Technique Is Not Ecologically

question 20

Multiple Choice

Discounting liabilities using the present value technique is not ecologically sound because:

• A) Environmental liabilities are hard to measure.
• B) The value of a dollar in the present is greater than the value of a dollar in the future.
• C) Discounting has the effect of reducing the apparent size of the cost of future environmental clean-up and so encourages entities to undertake projects that have large negative (distant) future impacts on the environment.
• D) It discourages entities from providing sufficient reserves to restore environments after project completion.

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Definitions:

Macrophage

A form of white blood cell which performs the action of engulfing and digesting cellular remnants, alien substances, bacteria, and tumor cells via a process termed phagocytosis.

B Lymphocyte

A type of white blood cell important for the immune system, responsible for producing antibodies.

Carcinogen

A substance capable of causing cancer in living tissue.

Cold Virus

A virus that causes an infection in the upper respiratory tract, leading to symptoms commonly known as the common cold.