Re: Solar-hydrogen home power system?

From: william mook (william.mook_at_mokindustries.com)
Date: 10/19/04 

Date: 19 Oct 2004 02:22:22 -0700

zzbunker@netscape.net (ZZBunker) wrote in message news:<e4a0829b.0410180956.17975d97@posting.google.com>...
> >
> > So, at 8% discount rate and say a 15 year lifespan, you've still got
> > to pay 60 cents or something like that per year, to pay for the time
> > value of money.
>
> But that is not the time value of money, which is why
> the US Congress loses money,

TILT! -bweep-bweep-bweep- :)

Look, you're obviously not getting something that is very simple to
someone who understands. And you don't understand at this point.

See, there's a calculation called NET PRESENT VALUE - NPV. Its in
every spread*** in the land. Read up on it in your spread***
help, or using online sources;

http://www.expectationsinvesting.com/tutorial1.shtml

It has nothing to do with Congress or Congress losing money. Its
quite simple really. I won't even get into the highly suspect
statement 'Congress losing money' - said as if we expect Congress to
make money. The statement clearly indicates you didn't understand a
damn word I said - so anything you say in response is MEANINGLESS!

> and the Stocks markets
> don't.

Stock markets you mean. Hmm.. companies make money son by creating
wealth. Stock markets are something else - they provide liquidity of
company assets.

You really should try to understand the basics of what you're talking
about before posting.
  
> That's the time value of a bank. Which is not
> money.

Go back to Present Value computations. Also, read up on how banks
work. I'll give you a clue, its not their money! Its the depositors
money in a bank. Discount rates are determined by the collective
expectations of the depositors and the condition they find themselves
in. 8% rate of return is a reasonable value to expect society to
change the way it does business.

If this causes your head to spin because it flies in the face of
cherished (and wrong) beliefs, then relax and lets look at it in a way
that's perhaps not so challenging to you.

We started out saying $6 per watt right? We added time value of the
money tied up in the equipment an got $9 per watt. Well, lets just
forget the time value of money and look at $6 per watt, operating 15
years and producing 30 kWh. Okay? That's $0.50 per kWh! A lot more
than the $0.02 per kWh of fuel costs in a generator. So, even if you
didn't ACCOUNT for the time value of money (which will drive
investment running screaming away from this use -as the communists
found) - you're still paying 25x more for energy at $6 per watt!
Which explains why very few people buy this stuff.

Now, if we reduce the cost to 1/25th - we'll match fuel costs. We'll
have to do better if we expect hard working people to invest their
hard earned money in expanding this enterprise - and that price is
1/33rd current pricing.

> Since you have no access to a bank, other that
> what the bank insurance company allows.

This rant has absolutely no meaning wrt my original post - so I delete
it without apology. Sorry bub, I don't have enough time (and you
likely don't have enough patience) to provide the education you need
on the subject of finance.

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