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The purposes of punitive damages are to punish a defendant and to deter similar acts in the future. The primary rationale for discounting is to allow damage awards to reflect the "time value of money.Benefits accrue over a multiyear period, and future costs can be converted to present value using a 3 percent discount rate. Present value of a future dollar is reduced over time due to discounting. 3.5. Discounting converts future costs and benefits that occur in different years into a value for a common year (present value). Discounting converts future costs and benefits that occur in different years into a value for a common year (present value). These risk weights capture the risk arising from variation in the present values of future cash flows due to variation in interest rates. 5.4.7 Forced Sales Resulting from a Judicial Order . Relevant appropriation amount is the total amount of the lump-sum appropriation minus sums already obligated, not the lower figure derived. And compare the present value of the future cash flows of different enterprises.