healthcare costs

1. Suppose that a $150,000 expenditure today on insulating layers to prevent toxic landfill seepage would eliminate $1 million worth of healthcare costs 20 years from now. If the social discount rate were 10 percent, would society be willing to spend the $150,000 today?
2. How would your answer to Problem 3 change if the discount rate were 5 percent? What is the most that society would spend to avoid the $1 million loss in 20 years with a 5 percent discount rate?

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