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Equation #19 · Chapter 9
Legacy Liability L_legacy
Legacy Liability
L_legacy · Ch 9P × (1+r)^t. The cheapest option always looks expensive today. Show them what doing nothing costs.
Worked example — The cost of changing nothing
A legacy estate costing $2.5M a year today, growing about 17% annually as the people who understood it retire and the workarounds accumulate. Look five years out.
It came out at $5.48M/yr by year five, doubling in 4.4 years. Red.
That's roughly $15,000 a day of doing nothing. Nobody approves a $3M project. Plenty of people approve stopping a $15,000-a-day bleed. It is the same slide with arithmetic on it instead of ambition.
Your turn — change one number
Result$5.48M/yr
Red. Doubles in 4.4 years. That's $15,017/day of inaction — the fire under the chair.