Present discounted value

Making driving safe

The home page for the Google Self-Driving Car Project contains the following:

Imagine if everyone could get around easily and safely, regardless of their ability to drive. […] Aging or visually impaired loved ones wouldn't have to give up their independence. Time spent commuting could be time spent doing what you want to do. Deaths from traffic accidents—over 1.2 million worldwide every year—could be reduced dramatically, especially since 94% of accidents in the U.S. involve human error.

In some walks of life, we can reduce risks by changing human behavior. In the case of automobiles, we train and license people to make them drive more safely. We also fine and incarcerate them when they don't...

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Investing in College

Most Americans want a college education, but it is expensive. On average, a four-year school costs about $25,000 per year, or $100,000 for a degree. That’s roughly half the median house price – a substantial investment. If you have to borrow to finance a college education – just like you borrow to own a house – is it really worth it?

The answer is yes for most people. But the outcome is not free of risk, especially for those students who borrow heavily relative to their future income prospects....

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