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If it's possible for them to earn money on float via investments or otherwise, the float must have higher NPV than their expected payouts, no?
by sooheon 6y ago
If it's possible for them to earn money on float via investments or otherwise, the float must have higher NPV than their expected payouts, no?
- ac29 6y agoYes, expected value must be measured against some reasonably risk-less rate of return (such as government backed bank accoutns, bonds, or similar).