Space commercialization: Analysis of R and D investments with long time horizons

By following a single hypothetical example through a series of variations, the way different potential investors might look at the opportunity to participate in space commercialization is described. The example itself is fairly typical of commercial opportunities in space. The chief characteristics are a steadily increasing requirement for capital infusion over an 8 year period, followed by a very generous stream of profits running another decade or more beyond. There is a decision point at 3 years, at the conclusion of laboratory R&D; and another at 6 years, following 2 initial space flights.