Quote:
Originally Posted by Macroni
Understand you point..... but.......There is always math..... in this equation it would be the opportunity cost of less than optimal utilization of leverage created by income cash flow.
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I am an engineer, I agree that math can be used to describe quite literally anything.
However, the zero debt solution may be the optimum if you do a good job accurately modeling the utility of not worrying about investments and risk as well a assigning the appropriate cost to managing said investments. For some people anyways.