Suppose we were given a discounted cost of $50,000, which has been generated using a discount factor of 3.5% and a time-horizon of 45 years.
Is it possible to obtain what the non-discounted cost is today?
For clarity, this is not as part of a test. Instead, it is an intellectual curiosity, where I simplified the figures taken from Page 4, Paragraph 4 of this paper:
My own intuition would be that the sign of the exponent is flipped, would this be correct?
Feedback from the mathematicians would be appreciated,
Best,
Andrew