Quote:
Originally Posted by #-3
Not to mention the fact that a 16x7 in real annual value would probably look something like 24,23,17,16,12,12,12, and if you accrue investment returns at like 6% on the extra money carried over the first 6 years it's like another $5M, over 10 years an earlier front loaded contract would end up making half the difference up.
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18,18, 24,23,18, 17,16,12, 12, 12 is more than 24, 23, 17, 16, 12,12,12, 16,16,16.
Having those extra years on the bed being higher earning years decreases the value of the deal more than accelerating the 1st two earning years. So going short term avoids stranding that money.