My sheet is set up so you can change the discount rate for the next 10 years. If I switch it to 2% for the next 10yr, and then make it 7% after that, the loss increases to 8% rather than 7%.
I should maybe also flag that you can easily end up with different discount rates for movement building and direct work, and I normally suggest treating them separately. The value of moving forward a year of movement building labour depends on your model of future movement growth – if EA will hit a plateau at some point, the value comes from getting to the plateau sooner; whereas if EA will still be exponentially growing when an xrisk happens, then the value is (very approximately) the EA growth rate in the year where our efforts become moot.
Agree there could be issues like that.
My sheet is set up so you can change the discount rate for the next 10 years. If I switch it to 2% for the next 10yr, and then make it 7% after that, the loss increases to 8% rather than 7%.
I should maybe also flag that you can easily end up with different discount rates for movement building and direct work, and I normally suggest treating them separately. The value of moving forward a year of movement building labour depends on your model of future movement growth – if EA will hit a plateau at some point, the value comes from getting to the plateau sooner; whereas if EA will still be exponentially growing when an xrisk happens, then the value is (very approximately) the EA growth rate in the year where our efforts become moot.