Serious question: If I wanted to buy 10% of your income for the next 10 years (let's assume this was possible pre-tax), how much would you charge me in up-front cash for that?
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So if I wanted to write you a check today in exchange for you giving me 10% of your income for 10 yrs, how much would that check have to be for you to do the deal?
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Replying to @AustenAllred
It's v simple - you're asking for the present value of a stream of future cash flows. That's Net Present Value: https://en.m.wikipedia.org/wiki/Net_present_value …
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Replying to @john_tipper
Yes, the qeustion is a. what do you think will happen to your future cash flows b. What is the current state of your finances, and could cash now move the needle
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Replying to @AustenAllred
Yes, you're after DCF valuation of future income if people taught by
@LambdaSchool, vs DCF for not and % of delta people will willingly pay.1 reply 0 retweets 0 likes -
Replying to @john_tipper @LambdaSchool
I also assume some folks would take it for pure non-DCF related reasons. Life circumstance and practicality.
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Replying to @AustenAllred @LambdaSchool
Yes, but in that case I'd caution against too long a timespan lock-in, otherwise all the good work you're doing might not look so benevolent
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I'm not seriously planning on doing it for 10 years, just a thought experiment
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