impur Posted February 28, 2010 Share Posted February 28, 2010 You guys are kidding yourselves if you think they'll be worth that when the colony has grown out enough for everyone to get 1 polyp. Besides that wasn't the point of the buy. Link to comment Share on other sites More sharing options...
grassi Posted February 28, 2010 Share Posted February 28, 2010 Don't bash him because its true that he was only asking a question. Though I'll bring some of my MBA skills to the table here. Present value formula Rt / (1+i)^t t - the time of the cash flow i - the discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk.) Rt - the net cash flow So making some assumptions that the red hornet won't be ready for a year and that most people are getting a 6% return for their investment the red hornet alone is worth $25.6 I will try to remember something from mine lol Considering the fact that the buyer could then re-frag it, we should calculate the net present value for.. let me say.. 5 years (medium term investment) and we should sum all the present values for the next 5 years. In 5 years the 1st polyp will produce 16. I think it is 1-(1+i)^-5 / i Sounds fair? (nutty) Link to comment Share on other sites More sharing options...
Chief Posted February 28, 2010 Share Posted February 28, 2010 There is nothing for sale here. This thread is closed. Jay Link to comment Share on other sites More sharing options...
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