It’s my understanding that in company valuation the discount factor is generally more the opportunity cost than the different value in the future. e.g., you might discount 2% as that’s what you’d get in the bank and then you know the valuation is discounted against a safe investments op cost. Don’t know if that’s new info at all.
For charities I suppose you wouldn’t use interest but how much more the money is valuable to them today vs next year?
Particularly for higher impact charities, I should think their funding momentum is far more valuable than any return their donors could make in EV through investing.
It’s my understanding that in company valuation the discount factor is generally more the opportunity cost than the different value in the future. e.g., you might discount 2% as that’s what you’d get in the bank and then you know the valuation is discounted against a safe investments op cost. Don’t know if that’s new info at all.
For charities I suppose you wouldn’t use interest but how much more the money is valuable to them today vs next year?
Particularly for higher impact charities, I should think their funding momentum is far more valuable than any return their donors could make in EV through investing.