this post was submitted on 12 Nov 2025
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Discount rates are one of my favorite things. But pretend I'm one of those dumbasses who didn't do the reading...? What would you say to really put those fuckers in their place!?
The further in the future profits are, the less they are worth today. As in getting $1000 today is better, then getting a promise of being paid $1000 in a decade. After all if you got the $1000 today you could have invested it and got a return on it. So lets say you know you can get a return of a rate of 5%. The $1000 today invested over a decade would be $1000 * 1.0510 = $1628.89 in a decade. You can also use it the other way around, to estimate what the $1000 is worth in the future. As in X * 1.0510 = $1000 -> X =$613.91 That rate of return is called the discount rate.
The issue with getting money in 50 years is that it ends up being nearly nothing today. So it is just a horrible idea.