Quote:
Originally Posted by Strange Brew
I’d argue you would use a much higher risk adjusted rate on a potential second contract if you are Lindholm. Suddenly the guaranteed money becomes way more valuable in comparison.
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If the second contract is discounted at 10% instead of 6.5% ...
Needs a three year deal at $5.97M
Needs a two year deal at $8.6M
So yeah more risk for sure.
Though I don't think a 3 year $5.97M contract is out of the question given the cap could be north of $105M at that point (making that today's $4.5M contract)