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If the EROI is high enough you try it prior to knowing the outcome. Because there is a curve of investment that eats into the Return portion of the equation, th
by maerF0x0 4y ago
If the EROI is high enough you try it prior to knowing the outcome. Because there is a curve of investment that eats into the Return portion of the equation, they should push up the number of votes (cost) until they hit their desired (cost of capital + profit margin). That is the rational way to act at least.
If someone says to you pay $1 to have a 75% chance at $2. you definitely should take it. It's the same with millions of dollars or billions of dollars.
- slg 4y agoYes, but if the question was "did someone give you $2?" then your ROI is irrelevant. The question wasn't whether someone would want to attempt this fraud. It is whether someone could successfully execute this fraud.
- maerF0x0 4y ago> It is whether someone could successfully execute this fraud. Wouldn't this become a certainty given enough Investment? if so then the EROI is a real factor because it tells us that someone not only could spend $ALOT but could also expect to profit from and so is likely able to fund the project.
- slg 4y ago>> It is whether someone could successfully execute this fraud. >Wouldn't this become a certainty given enough Investment? No, because the larger the fraud, the easier it is to detect and detection would make is unsuccessful. This requires an expertly targeted fraud that is both large enough to change the overall result while being small enough to go undetected. I don't think that specific combination is possible without a large conspiracy behind it.