Saw that CCP created some nice discounts for 3m+ Omega packs and I decided to do a little bit of analysis. For this, I just calculated the Net Present Value (NPV), which basically calculates the (*shocking*) present value of a future cashflow. The NPV is calculated as the `Cashflow/(1-i)^t` where i is the discount rate and t is the number of periods.
Now, the discount rate is a tricky business, but to keep it simple, I took the 12m average inflation rate in the US (8.3%) plus a 2% extra to cover for the risk of our money being better invested somewhere else (considering this is a video game, the money can always be invested in something better with actual future return, but this is a different discussion). After getting the final number (10.3%), we divide everything by 12 to get the monthly discount rate, as we also have monthly payments for EVE.
Now, with this little boring introduction, here are some numbers:
Considering that they advertised...
1-month: Full price
3-month: 20% off the full monthly cost of Omega
6-month: 30% off the full monthly cost of Omega
12-month: 40% off the full monthly cost of Omega
24-month: 45% off the full monthly cost of Omega
...comparing these numbers with Pay-per-Month loss and considering current avg inflation rate, we actually get way much bigger decreases.
Don't really know if this is something that would actually help anyone in taking a decision or not, just thought it can be interesting (at least for me) to calculate.
BTW, this is kind of how I make my long-term buying decisions as well. If anyone would be interested learning more about NPV, you can reach me on Discord or go to https://www.investopedia.com/terms/n/npv.asp.
PS: feel free to challenge whatever I wrote above, I might be wrong or not take some parameter in consideration.