crowdSPRING Blog
OCTOBER 12, 2015
EDITOR’S NOTE: We originally published this post back in 2010. In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent. A great illustration of sunk cost?
David Teten
NOVEMBER 15, 2013
Simon Lack reports in The Hedge Fund Mirage that from 1998 to 2010, hedge fund managers earned $379 billion in fees, while their investors earned only $70 billion in investing gains. I don’t think that a Net Present Value calculation is appropriate for every company. Would you pay a $379 tip for a $70 meal?
Cracking the Code
OCTOBER 10, 2008
To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. ► 2010. (5). Happy New Year 2010!
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