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Gold/Mining/Energy : Winspear Resources

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To: ddl who wrote (26184)7/12/2000 6:21:58 PM
From: .Trev  Read Replies (1) of 26850
 
Yes it's pretty close to what you describe.

Another name for the discount rate is "The Opportunity Cost" In other words the rate of return that you could resonably expect to get from an other investment made at the same time, i.e. NOW.

That's why people don't normally consider present worth to extend very far into the future because the discounting effect is cumulative each year. The rates change of course from time to time but basically they relate to the world market for money in fair sized gobs.

The guys that control the flow are concerned with:-
1) How much do you need?
2) How long do you need it? i.e. when will you repay it?
3) What's the track record of the borrower AND his consultants
4) What Risks are involved in the project itself
5) What other choices of investment are available for comparison purposes.

Hope that helps a bit
Cheers
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