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09/09/19
22:22
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Originally posted by Jazinger24
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Ok you don't understand what I'm getting at so i'll use an example.
Here is an example and everything will be in USD so we don't have conversion issues.
Money lent 15Mill USD .. lets assume 20% annual interest which is 3Mill USD. Lets also assume that EN1 are only getting 35% rather than 40% or greater return.
Lets assume it takes 90days for advertisers to pay so you can use the 15mill 4 times per year and still only pay 3Mill annually for interest.
1.15 mill x 0.35 = 5.25USD profit
2. 15 Mill + 5.25 profit from 1st run = 20.25 x 0.35 = 7.08mill
3 15 mill + 5.25 profit from 1st run + 7.08 mill 2nd run = 27.33mill x 0.35 = 9.56 mill
4 15 + 5.25 + 7.08 + 9.56 = 36.89 mill x 0.35 = 12.91
So total profits for the year is 5.25 + 7.08 + 9.56 + 12.91 = 34.8 Mill USD in profit .. less the 3 mill in interest leaves you with 31.8 MIll
31.8 / 15 mill = 2.12 ie 212% return.
This is why in business if you can make a greater return than the interest rate being offered .. you want to be able to use the money as much as possible and as quickly as possible to maximise returns.
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Question. An thanks if ya can explain.
So if each batch of money can be used 4 times a year.
How come the previous script can't be reused now rather than new script / loan etc as has been at least 3months since shares were issued for money or was that money for debt. Trying to understand
Cheers an good luck