Escalated values are also defined as actual, current, then current or nominal dollars. They are always inclusive of the effects of inflation and other parameters including technological, environmental, market, and related issues.
Constant values are escalated values that have had the effects of inflation discounted from them to a base period in time which typically is time zero, but could be any point. Constant dollars are also referred to as real or deflated dollars.
The only difference between escalated and constant values is the inflation rate each year related to the host currency. Consideration of this difference is critical for general geo-resource project evaluation.
Reminder - Complete all of the Lesson 5 tasks!
You have reached the end of Lesson 5! Double-check the to-do list on the Lesson 5 Overview page to make sure you have completed all of the activities listed there before you begin Lesson 6.