4 ms·

Regarding ... > #5 LTV (Life Time Value) Shouldn't the calculation factor in the time value of the money over the estimated life time? https://en.wikipedia.o

• jacques_chester 11y ago
  It's a pure summative estimate, as I understand it. I imagine that it's taken as the input for a net present value calculation by many investors.
  • Eridrus 11y ago
    Two equal LTVs could results in pretty different NPV results depending on the expected lifetime, and using both averages for the discount definitely has some error.
    • jacques_chester 11y ago
      That's a good point. I'm reminded of von Neumann's quip that "with four parameters I can fit an elephant, and with five I can make him wiggle his trunk."