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jhgb
on May 25, 2022
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Tell HN: I made $1000 with my app and now making $...
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.
nonameiguess
on May 25, 2022
[–]
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.
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