2 replies to this topic

[Spheroid]

I really don't understand this. Many businesses have payback periods on investments measured in years, years. They are still worthwhile since they end up generating positive NPV.

What does this mean if monthly mechpacks are being discontinued? Why does the one year payback period fail to qualify for investment approval?

Does it mean

(A) Same personnel are being redirected to create goods like cockpit items that collectively have higher NPV/IRR for equivalent dollars spent.

( B ) Rationing mechpacks will increase demand resulting in more profit for fewer manhours and dollars invested

(C) PGI's cost of borrowing is very high(9+%?) meaning even a project with a normally good payback period fails to generate positive NPV.

(D) PGI's ability to borrow money is hard capped and insufficient cash is on hand to keep full time modeling staff employed.


What is the truth?

Edited by Spheroid, 01 June 2019 - 10:25 AM.

[Anomalocaris]

You're assuming PGI management has a solid grasp on corporate finances, cash flow and RoI. Which kind of invalidates your questions from the get go, right?

[RePlayBoy101]

who cares the game is not generating any money ... this means its dead since noone will spend money on a dead game