We don’t know from this announcement that they are planning to prioritise rapidity of sale over time-adjusted return—it could still make sense to not continue e.g. paying as many salaries, and to have declared it shut down as a project.
Yes, totally possible. I am just specifically claiming that given that the cost of capital is one of the major expenses for this project, it would be surprising to me if it wasn’t worth the marginal cost of operating it on financial grounds, at least until some kind of buyer was found.
I am trying to make a pretty concrete claim about how I expect a benefit calculation to come out if done well, and definitely could be wrong (the thing that I have higher confidence in is that this decision wasn’t very sensitive to such a cost-benefit calculation and seems more driven by other factors).
We don’t know from this announcement that they are planning to prioritise rapidity of sale over time-adjusted return—it could still make sense to not continue e.g. paying as many salaries, and to have declared it shut down as a project.
Yes, totally possible. I am just specifically claiming that given that the cost of capital is one of the major expenses for this project, it would be surprising to me if it wasn’t worth the marginal cost of operating it on financial grounds, at least until some kind of buyer was found.
I am trying to make a pretty concrete claim about how I expect a benefit calculation to come out if done well, and definitely could be wrong (the thing that I have higher confidence in is that this decision wasn’t very sensitive to such a cost-benefit calculation and seems more driven by other factors).