It was actuaries that invented NPV?
I think the answer is "no." Actuaries do things like calculating NPV, except they incorporate probabilities of future events, like, say, someone dying in the case of a stream of retirement payments.
Oh, wow. This place looks great. Oh, I feel like a witch in a magic shop.
Willow ,'Help'
F2F 3: Who's Bringing the Guacamole?
Plan what to do, what to wear (you can never go wrong with a corset), and get ready for the next BuffistaCon: San Francisco, May 19-21, 2006! Everything else, go here! Swag!
tommyrot - Dec 23, 2004 4:01:09 am PST #370 of 10001
Sir, it's not an offence to let your cat eat your bacon. Okay? And we don't arrest cats, I'm very sorry.
§ ita § - Dec 23, 2004 4:03:23 am PST #371 of 10001
Well not canonically, no, but this is transformative fiction.
Using it is bad enough. Who made it up?
tommyrot - Dec 23, 2004 4:10:03 am PST #372 of 10001
Sir, it's not an offence to let your cat eat your bacon. Okay? And we don't arrest cats, I'm very sorry.
It's just a commonly used accounting... thingie. So I imagine it's been around for a long time.
What's so hard about NPV calculations, anyway? NPV and related functions are built into all spreadsheets and financial calculators. Is it comming up with the values you're gonna use in the NPV calculations?
§ ita § - Dec 23, 2004 4:15:44 am PST #373 of 10001
Well not canonically, no, but this is transformative fiction.
Nah, it's not the concept, it's the application in IT project management that makes my eyes twitch. Doesn't stop me from wanting to raze the earth of its creators and perpetuators.
Jon B. - Dec 23, 2004 5:01:09 am PST #374 of 10001
A turkey in every toilet -- only in America!
Actuaries use NPV constantly. It's one of the foundations of Actuarial Science (don't laugh).
Betsy HP - Dec 23, 2004 7:25:13 am PST #375 of 10001
If I only had a brain...
What sorts of things can you calculate NPV for? For instance, could you calculate the appropriate price to pay if you were buying Britney Spears's future earnings today?
What about a rock; does it have an NPV of zero? (I'm talking a rock that you just picked up in the parking lot. Not asphalt or concrete, but a real rock.)
Scrappy - Dec 23, 2004 7:34:04 am PST #376 of 10001
Life moves pretty fast. You don't stop and look around once in a while, you could miss it.
BT, Jon, I have some actuarial questions, as I am making the lead character in my new play an actuary. Would either of you mind if I emailed you with various general sorts of things?
Frankenbuddha - Dec 23, 2004 7:42:39 am PST #377 of 10001
"We are the Goon Squad and we're coming to town...Beep! Beep!" - David Bowie, "Fashion"
BT, Jon, I have some actuarial questions, as I am making the lead character in my new play an actuary. Would either of you mind if I emailed you with various general sorts of things?
Make sure the character either plays Theremin or is an amateur zoologist. Bonus points for silver pleather.
tommyrot - Dec 23, 2004 7:46:23 am PST #378 of 10001
Sir, it's not an offence to let your cat eat your bacon. Okay? And we don't arrest cats, I'm very sorry.
Actuaries also like to make fun of accountants.
No, seriously. They tell accountant jokes.
This is the only accountant joke (told by an actuary) that I remember:
What's a computer? An accountant with a personality.
OK, accountant jokes aren't necessarily funny....
Jon B. - Dec 23, 2004 7:46:32 am PST #379 of 10001
A turkey in every toilet -- only in America!
For instance, could you calculate the appropriate price to pay if you were buying Britney Spears's future earnings today?
Yes, as long as you're willing to make assumptions about what her future earnings payment stream will look like.
What about a rock; does it have an NPV of zero?
Generally, present values are calculated for things that have a stream of payments, or even a single lump sum payment, some time in the future. Unless the rock is farting diamonds, there's nothing to calculate.
Would either of you mind if I emailed you with various general sorts of things?
I'd be flattered Scrappy!