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by danuker 1463 days ago
You are right. Only in a zero-interest-rate environment are they "equivalent" WRT NPV. If you can safely get high returns, then you have to discount them.
1 comments

They are equivalent NPV wise only when the cost of capital is 25%. Cost of capital is a fuzzy concept and different folks have different numbers based on all kinds of things (despite the precise numbers put in spreadsheets). From a practical perspective they will almost never be NPV equivalent.