We want to build a new car. A fancy electric car. We raise money from investors, build plant, hire engineers, designers and workers, establish a supply chain and a distribution chain. How should we fairly price the product?
A. $0 for the next 10 years. We've got really rich investors.
B. $X0,000, in line with the fair market price for a new vehicle.
The role of capital money is to cover capital expenses (duh), especially in the early stages, not to subsidize selling the product at a dumping price for a prolonged time period.
A. $0 for the next 10 years. We've got really rich investors.
B. $X0,000, in line with the fair market price for a new vehicle.
The role of capital money is to cover capital expenses (duh), especially in the early stages, not to subsidize selling the product at a dumping price for a prolonged time period.