03-19-2018, 05:32 PM
(03-19-2018, 05:23 PM)panamaniac Wrote:(03-19-2018, 04:34 PM)timc Wrote: The capital cost is $818 million (now $868 million, I guess), and if you add annual financing costs of $11 million over 30 years, you get a number over $1 billion. Why he didn't go all the way and say it was costing $1.9 billion, I don't know.
My wording probably wasn't the best when I said that was the cost for construction and financing, because the capital cost is more than just construction.
How can you get to $1.9B?
By adding in all the financing (mostly interest) charges. It would be like adding up all your mortgage payments plus your downpayment and arguing that was the cost of your house.
If you wanted to really blow up the price you could take the total payments to GrandLinq, including all the operating expenses, and add them up too. But why stop at 30 years? There is nothing magic about Year 31. Might as well add operating expenses ad infinitum and claim the project is infinitely expensive.