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06-06-2013, 06:55 AM
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Originally Posted by Dado View Post
You're taking one piece of cash flow spread out over 16 years (not even NPVed, lol) and dividing it into a "value" number and think this means anything?

This can't possibly be serious. It's like dividing the distance between NY and Boston by the gallons of water in Lake Michigan and saying that's the length of time to travel to Mars and back.

Sometimes I wonder...

The first step is to explain how exactly a business with negative-20-million-$ (or so) in operating income has a value north of $150M. Yes, it comes from Forbes...but how did Forbes calculate that number for a business that does nothing but lose money?

Lol, I'm not multiplying distance by volume to come up with space travel... although I did find that mildly amusing.

Net Present Value is used to predict future earnings, compare them to the up front purchase cost of enabling those earnings, and establish whether something is worth investing in.

Net Present Value is relevant to evaluating the potential sale price of the franchise as a whole. The "one piece of cash flow spread out over 16 years (not even NPVed, lol)" can't be "NPVed"; there is no projected income from the buyout (except to dipietro, and it doesn't need to be calculated for him, his projected income is $24m with no costs to be weighed against it.), and in no way does the buyout contribute to the on ice product that does bring in income.

Net Present Value really has absolutely nothing to do with I'm talking about. Way to use google to find a term you have no understanding of, use it as an acronym in an attempt to disguise it like no one knows what it means just because you don't, and implement it in a context that that doesn't work (and is meant to make the OTHER person look stupid of all things ).

Net Present Value is the answer to the question at the end of your post. I should be thanking you though, I got to start my day with a laugh.

This thread has gone so far beyond ridiculous, I think I'm done with it.

Last edited by ShortSideFlick: 06-06-2013 at 07:36 AM.
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