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You focused on internal rates of return and netpresentvalue. I’m glad they taught you internal rates of return and netpresentvalue in business school. They are assumptions cascading on assumptions, presented as if they were statistical truth. Not discounted cash flow. I’m not alone in this.
Throwing $300k at something that “feels right” could have huge opportunity costs. If you’d like to purchase the site, opportunity cost of investment may be the way to go. If net profit is a criterion, do you have equipment costs? Labor requirements and costs? Is your KPI netpresentvalue of the project?
Internal rates of return and netpresentvalue. I’ll judge your projections for realism and credibility, but that’s sales, costs, expenses, cash flow, and other basic numbers. Not just disruptive , but market-leading , and viral , and pivot. I’m glad they taught you that in business school.
It is mathematically impossible for the median investor to beat a low-cost index, after expenses. (Of Of course, asset management firms also sell peace of mind, tax minimization, and other services besides just increasing the value of your assets.). I don’t think that a NetPresentValue calculation is appropriate for every company.
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