3 ms·
The idea is so long as you have an expectation of future ROI you can amortize that future value into the present and sell off the present equity for current cap
by maerF0x0 3y ago
The idea is so long as you have an expectation of future ROI you can amortize that future value into the present and sell off the present equity for current capital.
People are incentivized to put in capital so long as the risk adjusted rate of return exceeds marginal alternatives (including just sitting on the cash in a 2-10% inflation rate environment)