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View Diary: Would you invest in a dKos windfarm? [UPDATED] (217 comments)

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  •  Not me (none)
    This site has a brouhaha and exodus every few months. I can't say that it is a sound proposition to invest in the branding of this site with something requiring 20+ year payback.

    It could be worse. msaroff could still be living in Texas.

    by George on Wed Jul 13, 2005 at 09:03:58 AM PDT

    •  20+ year payback ??? (none)
      The 20+ year payback you cite does not seem correct.

      While not an expert, Jerome is ... he is suggesting that in the domain where he works, a 10%/annum ROI is not unusual (although he is not promising -- he has some caveats in his diary).  Assume a two-year process before any funds start coming back and with some simple 'net present value of money' calculations and you hit a break even at about the 15 year period (and this assumes a static return growing at the rate of inflation rather than a reasonable assumption that it might be higher due to energy cost growth).. This breakeven occurs in terms of cash return -- the 'investor' maintains an ownership share in the capital investment which should have a life-cycle of productivity of over 25 years (or even higher).  

      As noted elsewhere, this seems a poor investment path for anyone requiring funds in the near/short-term (under 5-7 years) but potentially excellent for those seeking to diversify their investment with 'annuity'-like funds that will provide a stream of income at the 5+ year period.  E.g., potentially for people planning for retirement (or in the early years of retirement trying to secure income flows for later on) or perhaps with children under 10-years old (e.g., money stream for college with the potential for selling the capital shares to help pay those costs).

      DISCLAIMER ... Does it make sense as the sole or principal investment for someone with tight resources?  Almost certainly not, but while I'm an analyst, I'm not professionally a financial analyst nor should any Kossack take any of the free (and frequently anonymous, like mine ...) advice as gospel for making financial decisions ...

      •  He cites European numbers (none)
        Which include higher electric prices and carbon trading. When I had researched this earlier, the US was looking at 25 year payback, which I adjusted for increasing prices in the last year.

        I am operating under the assumption that a dailykos branded windmill would be in the US.

        It could be worse. msaroff could still be living in Texas.

        by George on Thu Jul 14, 2005 at 08:17:26 AM PDT

        [ Parent ]

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