The Assessment of Economic Losses
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
The Assessment of Economic Losses
The topic of this case is ‘calculating economic damages,’ which is also the title of Chapter 12.
Your final goal is to complete the case’s ‘Enclosure E’ form on page 224. You must first work on Enclosure BE in order to accomplish this.
This case is similar to Haley Mills’ case in the textbook’s ‘Permanent Disability Cases’ section, but the main difference is that, whereas Haley will not be able to work again, Jane Doe has found a new employment. That is, you must determine the difference between 1) the pay she would have earned until retirement if she had not been injured, and 2) the wage she will actually earn until retirement. Also, because we’re dealing with ‘future cash flows,’ we must discount them to ‘present values’ when calculating the defendant’s economic damages.
Guide to the Assignment
1. In Excel, create Enclosures B and C and compute the expected income (f) for pre- and post-injury employments until Jane’s retirement age.
2. Calculate (f) as follows: (a)-(b)+(c)=(d); (d)-(e)= (f). About page 219, you can find information on the current wage, growth rate of that salary, tax rate, (fringe) benefit as a proportion of annual salary, and percentage of unemployment risk.
3. In Excel, create Enclosure D and compute the cost of replacing a home. On page 219, there is additional cost information. You don’t have to be concerned with the current value just yet.
4. In Excel, create Enclosure E and calculate the overall economic loss. In Enclosure BE, you already calculated (a) through (c), and (d) = (a) – (b) + (c).
5. The present value formula on page 219 can be used to calculate (e) in Enclosure E.
6. In Excel, create Enclosure F and complete the form. The ‘past’ damages are those that occurred prior to the trial date (i.e., before the 2-year anniversary of the accident), and the ‘future’ damages are those that are expected to occur after the trial.
What to send in:
In separate tabs, submit ‘one’ Excel file with Enclosure BF.
RUBRIC
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