A city employee is injured in an accident and is suing the city. The employee has been unable to work for the last two years as well as this year. Assume that the employee's salary over this three year period would have been $50,000 per year. The city employee's physician testifies that he will be unable to work for the remainder of his work life of 10 years The employee's forecasted salary for the 10 remaining years of his work life is $60,000 per year. The employee is also asking for $100,000 to cover emotional pain.

Suppose the discount rate is 10%. How much should the employee be awarded if he wins the case?

Answer rating: 100% (QA)

To calculate the present value of the employees lost earnings and emotional pain we can use the conc... View the full answer