Let's look at an example of using the NPV decision models in a slightly different scenario, it's an example I call should I stay or should I pro. Every year, college athletes have to decide whether or not they're going to stay in school or declare eligibility for the draft. As you may know, many college athletic programs are set up such that you can go pro before you graduate college. Unfortunately or fortunately depending on how you look at it, once you declare eligibility for the pro draft, you cannot go back and play in your college team. So the question is should I stay in college or should I go pro and give up my last year or last two years of college eligibility? How would you make that decision using the NPV calculation? In basketball for example, let's look at this. Several years ago from Stanford University, Robin Lopez can't decide whether he was going to go pro after his sophomore year. He identified where he was going to be drafted in the draft based on scouts reports. Given the fact that he was going to be dropped in the first round. He knew what his salary is going to be for the first three years. Using that calculation, he could determine what is the opportunity cost of staying an additional year in school. So the decision became do I stay an additional year in school and is it worth it for me to give up several million dollars? For some athletes, the decision to stay in school is greater than the opportunity costs, the value of their income stream. Tim Tebow, for example, stayed in school one more year and gave up his first year of professional football. He eventually was drafted and played for several years but he probably lost a million dollars or more by not going pro a year earlier. So the school must have been worth a million dollars or more for him. For some athletes like Robin Lopez, going pro was worth more than staying in school. The calculation can be done by looking at the present value of your future incomes stream, and comparing that to the value that you place in additional years of education. Good decisions can be made using good financial models.