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re: Would you choose $5 MILL in one check today, or $7.5 MILL paid over 5 years?

Posted on 8/25/15 at 1:38 pm to
Posted by icegator337
Lafayette
Member since Jan 2013
3698 posts
Posted on 8/25/15 at 1:38 pm to
5 today. Buy and develop land. With the right investments it would be worth much more than 7.5 in 5 years or it could be worth 0 in 5 years. I'd take the chance
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 8/25/15 at 1:50 pm to
Assuming a return of 12%, you can double your money in six years so this is a no-brainer--take the five and in six years you'll have ten million.
Posted by TheCaterpillar
Member since Jan 2004
76774 posts
Posted on 8/25/15 at 1:51 pm to
quote:

$7.5 MILL paid over 5 years?



If anyone says anything different they are more than likely a moron.


Or $5 million in the hole with some bad people.
Posted by yellowfin
Coastal Bar
Member since May 2006
98732 posts
Posted on 8/25/15 at 1:52 pm to
Where are you getting a 12% return?

You aren't taking into account investing the payments on the 7.5 either
Posted by TheCaterpillar
Member since Jan 2004
76774 posts
Posted on 8/25/15 at 1:58 pm to
quote:

You aren't taking into account investing the payments on the 7.5 either



I don't think anyone is. You could invest 100k a month with these installments.

As far as "who is paying you the money", assumed in this hypothetical that it is guaranteed you're getting the installments.

Posted by logjamming
Member since Feb 2014
8313 posts
Posted on 8/25/15 at 2:09 pm to
$5 million now.

/thread.

You could invest part of it and will earn more than 7.5 over the five years.
Posted by cas4t
Member since Jan 2010
71949 posts
Posted on 8/25/15 at 2:14 pm to
Posted by SundayFunday
Member since Sep 2011
9803 posts
Posted on 8/25/15 at 2:15 pm to
Im fully expecting pork butts to go up in the next 5 years so give me the 5 now.



Posted by TheCaterpillar
Member since Jan 2004
76774 posts
Posted on 8/25/15 at 2:15 pm to
quote:

$5 million now.

/thread.

You could invest part of it and will earn more than 7.5 over the five years.


A. You didn't read the thread.

B. You're investing, not all of 5 million, but just a PART of it and you'll earn over 2.5 million in 5 years? Please sensei, show us your ways.
Posted by yellowfin
Coastal Bar
Member since May 2006
98732 posts
Posted on 8/25/15 at 2:17 pm to
I'm surprise more of these posters haven't been scooped up by private equity firms yet
Posted by logjamming
Member since Feb 2014
8313 posts
Posted on 8/25/15 at 2:23 pm to
quote:

You're investing, not all of 5 million, but just a PART of it and you'll earn over 2.5 million in 5 years? Please sensei, show us your ways.



Lotto tickets. Duh.
Posted by SEClint
New Orleans, LA/Portland, OR
Member since Nov 2006
49476 posts
Posted on 8/25/15 at 2:24 pm to
What?

Look you could go to Canada and buy xanax for 25 cents, you spend 1 million on that and you have 4 million 1mg. They can go for $3 each in some places. That's turning 1 million into 12 million right there..and that's just the north.

Mexican border would be a lot easier, or purchase your own small double engine plane. Learn how to fly or hire a pilot to fly you to south America and back. That's the real money. This country is just begging for another 80s excess boom.
Posted by Peazey
Metry
Member since Apr 2012
25424 posts
Posted on 8/25/15 at 2:27 pm to
I might die tomorrow. Give me the money now, and I'll go out with a bang.
Posted by lsu480
Downtown Scottsdale
Member since Oct 2007
92902 posts
Posted on 8/25/15 at 2:27 pm to
quote:

Oh really? Where? How?



Investing in my business
Posted by AlexLSU
Member since Jan 2005
25341 posts
Posted on 8/25/15 at 2:35 pm to
I'm kind of surprised how many of you dummies would actually choose the $5 million option, then I remember that this is the OT and am actually surprised that more of you didn't choose $5 million.

This post was edited on 8/25/15 at 2:40 pm
Posted by slackster
Houston
Member since Mar 2009
91300 posts
Posted on 8/25/15 at 2:46 pm to
quote:

Assuming a return of 12%, you can double your money in six years so this is a no-brainer--take the five and in six years you'll have ten million.


At 12% constant growth, compounded annually:

Lump sum grows to $8,811,708 after 5 years.

Installments grow to $10,143,986 after 5 years.

quote:

no-brainer


Posted by slackster
Houston
Member since Mar 2009
91300 posts
Posted on 8/25/15 at 2:49 pm to
quote:

Investing in my business


Fair enough, but it better be more than 8.45% guaranteed return, because that is what you're passing up.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
94675 posts
Posted on 8/25/15 at 2:50 pm to
quote:

$7.5 MILL paid over 5 years
Posted by Nuts4LSU
Washington, DC
Member since Oct 2003
25468 posts
Posted on 8/25/15 at 2:51 pm to
Depends on your expected rate of return on investment. But it would have to be very high to justify taking the $5 million now.
This post was edited on 8/25/15 at 2:57 pm
Posted by lsu480
Downtown Scottsdale
Member since Oct 2007
92902 posts
Posted on 8/25/15 at 3:00 pm to
I would risk it for sure
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