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If current dollar analysis is selected, then all values need to be in nominal values. Since the default escalation rates are saved in real terms in the data table, they need to be adjusted for inflation to get the nominal escalation rates to be used for the analysis. You use the function you already use to calculate the nominal discount rates from the real discount rate and inflation rate. It's the same except in this case you have to convert the escalation rate for each year of the study period. Example to test this on is Federal Financed.
The text was updated successfully, but these errors were encountered:
If current dollar analysis is selected, then all values need to be in nominal values. Since the default escalation rates are saved in real terms in the data table, they need to be adjusted for inflation to get the nominal escalation rates to be used for the analysis. You use the function you already use to calculate the nominal discount rates from the real discount rate and inflation rate. It's the same except in this case you have to convert the escalation rate for each year of the study period. Example to test this on is Federal Financed.
The text was updated successfully, but these errors were encountered: