Net Present Happiness

In finance, a series of present and future cash flows associated with an action or project are discounted back to the present to calculate a Net Present Value (NPV).  Although this is done by many, often the "discount rate" used does not undergo scrutiny to assure that it is consistent with the underlying economic theory, Capital Asset Pricing Model. At the heart of discounting are two intuitive concepts – money later is less valuable than money today (time value of money) and risky money is ...