[Solved] Discounting Liabilities Using the Present Value Technique Is Not Ecologically

Question 39
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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