Moroney argues that with low interest rates and low inflation, the presentvalue of future profits goes up and so do the multiples investors are willing to pay for companies with higher profit growth.
Measuring economic costs weighs the expense of both vaccination and illness against the net presentvalue of the future earnings of someone who would otherwise die from the disease.
Tax reform proposals should be assessed based upon the presentvalue of future federal revenues, and not on the revenues that they are expected to bring in during the current fiscal year.
In both cases what really makes the entity valuable and successful is the very special way the intangibles and tangible assets come together to generate a presentvalue of future net income.
The only way to assess a country's fiscal condition that is free of this problem is by forming the country's fiscal gap--the presentvalue total of all the official debts and unofficial current andfuture spending obligations after netting out all the current andfuture taxes everyone is currently slated to pay.