Quote:
Originally Posted by alnorth
I disagree, since there is not an interest rate or any discounting that has to be done, the math is trivial. Also, it is more intuitive and easy to understand to say "if you do this, you'll get this much money, and if you do that, you'll get that much money". Its how we usually evaluate economic decisions. Classifying benefits vs costs works too, but its a bit more needlessly esoteric.
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I don't understand your reasoning here. I did the math in my head in about 30 seconds using a comparison. This way is akin to counting cards using a running count. Your way is like tracking every card.
I did the math this way.
-40k @ 3 yrs = -120k
+15k @ 3 yrs = -75k
+15k @ 3 yrs = -30k
-8k = -38k
-1k @ 30 yrs = -68k
+50k = -18k