Estimating Capital Value

This lecture covers the concept of discounting, illustrating how to determine the present value of future payments by discounting them over time. Through examples, the instructor explains how to calculate the rate of return on investments and the importance of time in determining the value of capital. The equivalence between different investment options is discussed, showing how to estimate the value of capital based on future income streams. Additionally, the lecture explores how natural and human capital are estimated by organizations like the World Bank, considering factors such as extraction costs, renewable and non-renewable resources, and future labor incomes. The presentation concludes by emphasizing the significance of managing assets for future generations.