by Foarl » Sat Apr 30, 2011 3:53 am Markoff_Chaney wrote:Saphireking65 wrote:Hmmm, sell a q70+ node for a large amount of money now, OR sell off the naturally regenerating recourse for practically infinite money over time?
You're not thinking fourth dimensionally. The present value of the resource's future revenue depends on the landowner's discount rate. If his discount rate is greater than zero (which it probably is), then the present value of the revenue would decrease exponentially as you move further into the future. When you take this into account, it would be perfectly rational for some landowners to value a large lump sum more highly than a perpetual trickle.
Actually, there's more to it than that. The lump sum now requires considerably less effort than maintaining the trickle over the next 2-3 months would. And it's also forgetting the risk value. Holding onto the resource comes with the chance of losing it entirely.
That being said, selling the node is quite risky. Anyone powerful and rich enough to "afford" a node is powerful enough to screw you over and not care.
