Calculation of Present Value of Damages

Calculation of Present Value

For either medical or vocational damages it is necessary to calculate damages in future dollars and then discount these future damages to present value as of the time of trial. RPC has expert economists who are able to bring all damages calculations to present value. We compute different inflation rates for specific goods, services and wages. Our procedures ensure consistency between the inflation and discount rates used. The time series data used in these calculations of damages are continuously updated as government agencies publish new statistics. We also take the particular facts of each case into consideration to ensure the most accurate data and practices are used in our calculations.

Review of Present Value Analyses

RPC also assists defense counsel by reviewing present value calculations prepared by opposing experts. We evaluate whether the selected discount rates, growth assumptions, and methodologies are appropriate and consistent with accepted economic practice.

Our economists identify unsupported assumptions, methodological errors, or internal inconsistencies that may overstate or understate economic damages. When appropriate, RPC provides alternative present value calculations based on corrected assumptions and sound economic reasoning.

For more information, contact Athenna Dill, Personal Injury Case Manager, 512.371.8005, adill@rpcconsulting.com.