Discount Rate, Risk & Economic Damages: Practical Considerations

Business Valuation UpdateVol. 15 No. 9
September 2009
Brian P. Brinig, JD, CPA/ABV, ASA
Jeff H. Kinrich, MBA, MS, CPA/ABV, CFF


When calculating damages awards in litigation, it is undisputed that the plaintiff’s projected economic losses must be discounted to their present value to avoid over-compensating for the harm caused by a defendant’s wrongful act.