Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: Reginald Middleton who wrote (130)	11/4/1997 1:30:00 AM
From: Pirah Naman	Read Replies (1) \| Respond to of 253

> "that individual's return requirement" should reflect the oppurtunity cost of investing in that particular vehicle in lieu of investing in the risk free instrument. No. It should reflect the investor's other options, period. Those who invest in non-publicly traded instruments will understadn this immediately. > This is derived via a mathematical equation ... Seeking a false precision. > hese are the barriers the companies must overcome to create value, and these are the numbers that should be used as a discounting rate. You are using a different defintion of discount rate.