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The scout believe, however, that Landon will be a much higher draft pick if he improves by playing out his eligibility. If he stays at
The scout believe, however, that Landon will be a much higher draft pick if he improves by playing out his eligibility. If he stays at the university, he is expected to receive a $2.5 million signing bonus in two years along with a 5-year contract for $5 million per year. After that, the scouts expect Landon to obtain a five-year contract for $6 million per year to take him into retirement.
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Assume that Landon can earn a 8% return over this time. Should Landon stay or go?
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