And (B) is where your reasoning is flawed - if you were to buy all 5 shares in an aircraft, in a group, do you think that group is going to hand over £10K cash? No - they're going to split it amongst the 5 of them BECAUSE THE GROUP WILL HAVE BEEN DISSOLVED.
That wasn't the question. Buying one share gives you ownership of 1/5 of the benefits that flow from the fund. If you later buy a second share then you have 2/5 of the benefits of the fund and so on. You buy all five of them, then you have the full benefits of the fund.
I have not misunderstood your proposition in the original question - I've just answered it, pure and simple. You asked how much 1/5 of a share would be worth under the 2 scenarios you posed of someone buying it. Changing the proposition in your latest post to fit your present answer is hardly a cogent form of argument - Read your original question first.
I have not changed my question. I clarified it a little, because I thought that you had missunderstood it. If you haven't misunderstood it then fine. You're just wrong, and I haven't managed to educate you yet
$hit happens - kudos to the new member for joining at the right time. You could, of course, ask them if they'd like to contribute £2K and buy a £37K aircraft.
You can't just ignore Foxmouths proposition. Value has come from somewhere, and an investor would be stupid to ignore that value. If they don't get that value in the form that Foxmouth has described, then they will get the value when the new engine must be purchased.
The value is real, and to simply ignore it because $hit happens, results in an incomplete valuation.
The group DOES NOT HAVE ASSETS. The group has DEFERRED LIABILITY
Bose-x, I can't agree that there is a liability here.
A liability is defined as
Liabilities are obligations of an entity to transfer economic benefits as a result of past transactions or events.
The group has no obligation to transfer the fund to anyone. It can keep it for as long as it likes. Nor is it under any obligation to replace the engine if it doesn't want to. It can either sell the aircraft engineless or leave the airframe rot away in a shed. Having a fund does not create an obligation to transfer economic benefits, and therefore it does not met the defination of a liability.
dp