RE:take npv with a grain of saltYou're mostly proving 7,5% is an unrealistic growth/interest rate. We're ten years after the credit crisis and industrial production in the world is still lower then it was in 2007.
Not to mention historicly speaking, I don't know if there are actual data describing it well, but I'm pretty sure inflation is a rather recent occurance. With very big ups and downs. So it might have happened for example in Spain during the time they conquered South America, which created a big stream of gold to Spain, creating inflation, but it also went down bad with a big crash eventually. I can only remember reading about it in Piketty's "Capital". Which doens't even go back that far in history. High growth rates are something of the present.
So 0,1% growth ^ 3.000 years on 1 penny, gives you 20 pennies.
Though, even taking that in mind, I'm still a fan of Excelsior. =)
CuJunior wrote: The combined wealth of the entire world in 2017 is $241 trillion.
King Tut lived in 1324 BC, 3341 years ago.
To determine interest for 3341 years at 7.5% interest, take 1.075 to the 3341 power.
1.075 to the 3341 power is 8 followed by 104 zeros.
$241 trillion is 241 followed by 12 zeros.
So, if King Tut had simply invested the tiniest sum of money, lets call it a half of a penny, the value of a single grape, at 7.5% interest, it would be worth far more than all the wealth in the world today.
Conversely, if someone promised to King Tut all the wealth in the world for Egypt in the year 2017 just for a grape in the year 1324 BC, King Tut's accountants would use NPV and say that it was worth far less than the value of a single grape - don't do it.