Question
On Protection offers several private protective custody services for criminals who have run afoul of their former colleagues. One client, John, is renewing this service
On Protection offers several private protective custody services for criminals who have run afoul of their former colleagues. One client, "John", is renewing this service and is evaluating three of On Protection's bespoke protection package offerings:
1. The Lott offers protection over a 9-year contract. There is a one-time fee of $1,264,273 at t=0, which covers the service for the full length of the contract.
2. Ya Dog offers protection over a 7-year contract. There is a start-up fee of $509,411 at t=0 and an end-of-contract relocation fee of $1,326,710 at t=7.
3. Ya Mutt offers protection over a 4-year contract. There is no initial startup fee. Instead, they expect 4 equal payments of $249,990 at the end of each year from t=1 to t=4.
Fearing that he will "get stitches", "John" anticipates a need for lifelong protective custody and will renew or choose a new service at the conclusion of the first contract. Given this, rank these providers from best (most economical) to worst (least economical) assuming a discount rate of 14.0%:
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