Quote:
Originally Posted by *niko*
Inflation Rate, so if inflation is 3% I would lose $45
|
Good. I understand it so that you by inflation refer to a general price increase. I don't define inflation as such, but that's what you meant, so it's good. But such a general price increase is only part of the actual costs during that year. The general idea is to consider relevant alternative costs, one of which you mentioned.
Quote:
Totally depends on the lifespan of your project and the item. Also if you are thinking about selling said item after you use it or not. In general electronics have issues with resale value...
I tend to go with absolute price. And if it matters I weigh it by projected ROI % - 30 (because I always tend to overestimate)
|
Price - Wikipedia, the free encyclopedia
Basically what matters are the relative prices. It is not interesting in itself if a computer costs $1000 or $2000, but what the price ratios to prices of other commodities are. A cell phone for $10 000 may sound pretty expensive, but that is assuming that you are facing prices of other goods similar to those today. If the prices of all other goods were given a large shift upwards, then those $10 000 would start to look like a better offer.
