Isn't the 'payback period' just a finance theory metric used to analyse the project's feasibility? I'm not sure it means that the company will literally pour every dollar of income into repaying it's cost and the company earns nothing until it's cost base is repaid. The hope is that the asset value on completion is greater than the cost to build it thereby adding equity uplift to the balance sheet. The completed asset should be able to be leased or financed with interest payments only being some of the income which means equity is being created in addition to new cash flows. People buy commercial property with long secure leases on 5% yields which would imply a 20 year payback, that doesn't mean they make nothing for 20 years.
STX Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
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