Hello, I am comparing two spending scenarios for stormwater management in Washington D.C. (a green infrastructure alternative and a grey infrastructure alternative). I have run the model by entering in spending for future years. Before entering the spending inputs into the model, I applied an inflation rate of 3% to escalate to the event year(all of my original spending data was in 2012 USD). I used your default output and GDP deflators in the model. I just want to double check to make sure that I am correct in doing this. Or should I be comparing alternatives in 2012 USD (regardless of when the money will be spent). The issue is that the alternatives will be implemented over different time periods. When I run the model in all 2012 dollars (keeping the event year as 2012 for every event), I get a lower $ vale output then when I run it using the 3% inflation rate and entering in the appropriate event year. Can you please provide insight? Thanks.
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