Quote:
Originally Posted by FlamesFanTrev
I believe the point being made was that if, based on your payment scheme, the first 2years are worth 2 mil each, year 3 is worth 3 mil year 4 is worth 4 mil, but he's getting front loaded 5mil AAV for 5 years, that essentially puts his 5th year value at 14 mil (25-2-2-3-4=14). Or if you were to say take option 3, 4x4 years=16 mill, the difference between that and option 4, 5x5=25 mil makes that last year worth 9 million.
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Exactly. Each year being added in that scenario is a very expensive year. Otherwise you're asking whether Bennett would prefer $5 million a year vs $2 million a year, which is rather obvious.