Scott, aged 40, and Darby, aged 35, have two children, aged 5 and 10. Scott’s estimated

Scott, aged 40, and Darby, aged 35, have two children, aged 5 and 10. Scott’s estimated average gross annual earnings until planned retirement at age 65 are $65,000, and Darby’s estimated average gross annual earnings until planned retirement at age 60 are $75,000. Suppose that 40 percent of each of their earnings is used for income taxes, premiums, and the cost of self-maintenance. Calculate the economic value of each of their lives, assuming that the present value of $1 per year for 25 years at 5 percent interest is $14.09