Re:U.S. Inflation Accelerates to 40-Year High
by danielmarkbruce on Thursday February 10, 2022 @01:47PM
(#30290676)
You have to be consistent. You either discount real with real or nominal with nominal. As soon as you are consistent you'll see either the discount rate isn't negative (nominal) or, your cashflow is ~zero (real).
Put aside finance theory for a second - does it make sense that, even in theory, my rental house earning $100 per month more than the cost to upkeep it, is worth infinity? Of course not.
Put aside finance theory for a second - does it make sense that, even in theory, my rental house earning $100 per month more than the cost to upkeep it, is worth infinity? Of course not.