OTCQX:GTBAF - Post by User
Comment by
lechmeiron Mar 17, 2021 10:43am
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Post# 32815974
RE:RE:Net Present Value
RE:RE:Net Present ValueSure thing - I'm not sure what you mean, or what you think I said.
However, the subject of net present value (NPV) was brought up. It has a specific meaning.
Basically, the ounce of gold you dig up today is worth x, while the ounce of gold you expect to dig up twenty years from now is worth x minus a discount based on the rate of return you would have expected from deploying your money elsewhere. I mean, would you give me USD $1735 for an ounce of gold to be delivered twenty years from now?
There are other factors. For risky ventures you apply a greater discount, for less risky ones you apply a lesser. In any capital asset pricing model you factor in a beta for risk. (You want more profit for taking a risk) It's been a while since I took any of those classes, but trust me, the company that purchases this project will employ some folks who keep up with the material.
It's not doom or gloom. It's business. We'll be fine.