Re:Tell HN: I made $1000 with my app and now making $500/mo
by jhgb on Wednesday May 25, 2022 @03:12PM
(#31509152)
Doesn't time value of money decrease this effect? Assuming a fixed revenue over time, future revenue is much less relevant, so is its loss.
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Re:Tell HN: I made $1000 with my app and now making $500/mo
by nonameiguess on Wednesday May 25, 2022 @04:03PM
(#31509805)
That's what the 4% is. A perpetuity that pays out $6000 a year is valued at $150,000 assuming a 4% discount rate. Without a discount rate, the value of any perpetuity would be infinity.