An agent faced with an investment option is by textbooks advised to discount the expected net cash flow to the time of investing. There is disagreement on how to select discount rates though. This can be detrimental to the quality of investment decisions at all levels in society. A human individual might not apply the same discount rate as the management of a major corporation. Agents can have different time preferences. We analyze these by applying the theory for living systems (such as groups, organizations, societies). Discounting is a way of considering future risks according to classical interest rate theories. There is a recent analytical formulation of causes for subjective discounting. We apply it to the concept of living systems for modeling subjective discount rates. We define an investment subject as a living system capable of stating whether one of two consumptions is not preferred to the other. We analyze decision situations where the future consumption is non-tradable and derive lower bounds for subjective discount rates. Numerical examples are given. Key words: subjective discount rate; living system; capital investment plannin
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