Discount Rates, Risks, and Uncertainty in Economic Damages Calculations | FVS Practice Aid

Experts 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