Our financial titans would have us believe in the power of Net Present Value ( NPV) . Reality is it’s a piece of time travel whereby they extract present money from a pretend future.
If we were to apply their rules to oil reserves, we would see NPVs of ZERO. Using the bias of hyperbolic discounting , they are fixed the formulae to allow the status quo
Our financial titans would have us believe in the power of Net Present Value ( NPV) . Reality is it’s a piece of time travel whereby they extract present money from a pretend future.
If we were to apply their rules to oil reserves, we would see NPVs of ZERO. Using the bias of hyperbolic discounting , they are fixed the formulae to allow the status quo