3 ms·
Consider also the time value of money. If you buy the acoustic you are out all of that money immediately. If not, you can invest it and at least beat inflation.
by sulam 4y ago
Consider also the time value of money. If you buy the acoustic you are out all of that money immediately. If not, you can invest it and at least beat inflation. That’s assuming you have the lump sum in hand of course, you may not, and be forced to buy on credit, which will in turn drive a different economic analysis.
I’m pretty comfortable in my belief here. Certainly the immediate winner is the DP, and you may not stick with it long enough, or even live long enough, to win the long term bet you are making here.
Back to my original point — I’m not saying the acoustic isn’t worth it, simply that you should not analyze it from a purely economic point of view, because it is a losing argument from that perspective.
- djtango 4y agoFair enough. I agree that there is definitely more to just the economics of owning a piano. Times have changed but I do quite like the idea of passing down a piano too. I also can accept your reasoning and definitely agree re. time value of money (and the value of optionality) but I was surprised actually see the numbers play out the way they did. As for me, the much bigger problem is finding a place big enough to house a bloody grand piano!