Exercise 1: Long Term Discounting (30 points) Assume a project will result in benets of $1 trillion in 500 years by avoiding an environ- mental disaster that otherwise Would occur at that time. (a) (10 pts) Compute the present value of these benets using a time-constant discount rate of 3.5. (b) (10 pts) Compute the present value of these benets using the following time-declining discount rate schedule: 3.5 percent for years 150; 2.5 percent for years.J 51100; 1.5 percent for years 101200; 0.5 percent for years 201300; and 0 percent thereafter. (c) (10 pts) Compute the present value of these benets using the following timedeclining discount rate schedule: 3.5 percent for years 150; 2.5 percent for years, 51100; 1.5 percent for years 101200; 0.5 percent for years 201300; and 0.2 percent thereafter. How does your answer compares to (b)? is the difference signicant enough as to be important