Originally Posted by iowast8fan
Why would it be better to pay 2.7 million in one big check when they can invest a much smaller amount and pay it out in installments of the next 10 years while it collects interest.
I agree that the smart thing is to pay it over time. The NPV (Net Present Value) of this payment stream at the rate of return Pickens has been earning for the money he gave them would be a much smaller number than the $2.7 million over the 10 + years.