Primary keyword
economic damages calculation
Category · Economic Damages
Pillar / educational14 min read
Semantic keywords
- lost profits analysis
- commercial damages expert
Lost profits and the but-for world
Lost profits models compare actual performance to a but-for scenario absent the alleged wrong. The expert must defend the baseline, the impact period, and variable vs fixed cost treatment.
Mitigation evidence can collapse a damages theory if not addressed explicitly.
Discount rates, projections, and sensitivity
When future cash flows are projected, discount rates and growth assumptions dominate outcomes. Experts should disclose ranges and test sensitivity to contested inputs.
Courts may scrutinize whether projections are anchored in contemporaneous budgets or management track record.
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