“Unfortunately I think this is too far away to have much impact on NPVs now. Say it takes 5 years to develop the technology, and 20 years for early adopters to mature and enter the workforce. Suppose the rate of RGDP growth increases from 2.5% → 10%, and we use a discount rate of 8%. I don’t think you’ll get much movement in NPV”
But then I actually worked it out in excel and the NPV triples. So thank you for the good suggestion!
My initial reaction was
But then I actually worked it out in excel and the NPV triples. So thank you for the good suggestion!