3 ms·
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.
by 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 agoTwo 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 agoThat'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."