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:

Visual Support

Use of images, videos, charts, or any visual aids to enhance the understanding or appeal of a message.

Handling Audience

Strategies and techniques used by a speaker or writer to engage and maintain the interest of their audience, ensuring message efficacy.

Hostile Objection

Strong resistance or opposition encountered, typically in the context of sales, negotiations, or legal proceedings.

Anticipate

To expect or predict something to occur in the future, based on current knowledge or trends.