Let’s say you have a thing that generates cash flows of $1 million a year. A business, a rental building, a pile of credit card receivables, whatever. Let’s say you can capitalize those cash flows at 5%. So the thing is worth $20 million. You want some more money now.
https://www.bloomberg.com/opinion/articles/2021-09-09/twenty-percent-of-a-picture-of-a-dog