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Deep dive into the mathematics behind PSC's amplification effect. Explore how recycling rates translate to system-wide impact multipliers.
Each cycle, R% of capital returns. The sum of this geometric series gives total impact.
At R=80%, you need 21 cycles to capture 99% of theoretical SVM.
SVM grows exponentially as R approaches 100%. Moving from 80% to 90% R doubles the multiplier (5× to 10×).
Most impact (90%+) is captured within 20-30 years for typical R factors. The theoretical limit is approached asymptotically.
| R Factor | Theoretical SVM | 10yr SVM | 30yr SVM | Years to 90% |
|---|---|---|---|---|
| 50% | 2.00× | 2.00× | 2.00× | 4 |
| 60% | 2.50× | 2.48× | 2.50× | 5 |
| 70% | 3.33× | 3.24× | 3.33× | 7 |
| 80% | 5.00× | 4.46× | 4.99× | 11 |
| 90% | 10.0× | 6.51× | 9.58× | 22 |
| 95% | 20.0× | 8.03× | 15.7× | 45 |