Let’s ignore risk. Suppose the company has a market value of P right now at time T0=0, you expect the vault to open at time ΔT, and the bond rate (which equals the equities rate because this is a risk-free thought experiment) equals r. Then the value of the company at time ΔT is 10 million dollars. If the value of the company at time ΔT is 10 million dollars then the market value (price) of the company right now is 10 million dollars times r−ΔT.
Suppose vaults are a fungible liquid securitized asset and that you can buy fractions of them. Suppose you invest in these vaults. Whenever a vault opens, you immediately invest your 10 million dollars cash in more vaults. Your investment grows at a rate r, exactly equal to the bond rate.
I think what you’re missing is that whenever a vault opens you immediately reinvest the cash. The vault has different time-adjusted value depending on when it opens. On a long enough time horizon, $10 million now is worth more than $10 billion later.
Let’s ignore risk. Suppose the company has a market value of P right now at time T0=0, you expect the vault to open at time ΔT, and the bond rate (which equals the equities rate because this is a risk-free thought experiment) equals r. Then the value of the company at time ΔT is 10 million dollars. If the value of the company at time ΔT is 10 million dollars then the market value (price) of the company right now is 10 million dollars times r−ΔT.
Suppose vaults are a fungible liquid securitized asset and that you can buy fractions of them. Suppose you invest in these vaults. Whenever a vault opens, you immediately invest your 10 million dollars cash in more vaults. Your investment grows at a rate r, exactly equal to the bond rate.
I think what you’re missing is that whenever a vault opens you immediately reinvest the cash. The vault has different time-adjusted value depending on when it opens. On a long enough time horizon, $10 million now is worth more than $10 billion later.