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.

Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (1384)	10/18/1998 7:23:00 PM
From: Steve Joy	Respond to of 2251

Mr Trump I would like to know what you thought of MGJ's Results were like I thought they were good even though they had only One marco but the marco was Exceeding the 1 mm which looks better then most of the companys that realease the .5 mm. who Knows 10 more of them could be between the .5 and 1 not bad for the first summer exploration program. also how long have the companies been in alberta doing exploration. Thanks in advance Steve

To: Tomato who wrote (1384)	10/18/1998 10:55:00 PM
From: maintenance	Read Replies (2) \| Respond to of 2251

NPV is a decision maker. If NPV is positive, do it, if NPV is negative, don't. When comparing projects the highest NPV wins, provided it is positive. NPV...Net Present Value The discount rate should reflect the cost of money. If your cost of money is the risk free rate, it is appropriate. I don't imagine WSP can borrow at the risk free rate, there would be a premium. Discounted cash flow analysis gives the illusion of precision, it should be based on stated assumptions. If the price of diamonds is expected to inflate, you would discount the inflated figures. If the inflation rate is higher than the cost of money (discount rate) then yes the resulting NPV will be higher. These are all estimates and are useful in evaluating a project. P/E should use estimated E. The problem with IRR is that it assumes a constant reinvestment rate. When I get a minute I'll rerun the numbers using Georges figures for tax, reclamation etc. Do you care to provide an inflation rate? NPV is easy to calculate. If you have a series of cashflows, say $100 per year for two years, and a discount rate of 5% then you have (100/1.05)+(100/(1.05^2)=95.24+90.7=185.94 so paying $185.94 for those cashflows is exactly fair. Of course providing that your discount rate is correct! Cheers