Question

You have to choose from two contracts you can sign with a client. The first one is a short term contract that will bring Goldman Sachs 1 million in revenue in one year time. The second contract is for a long co-operation, but it will bring us only $100,000 each year. Which deal would you choose, and why?

Answer 1

ANSWER ::

We Chose The second contract is With A long co-operation, That will bring us $100,000 each year. Because As We Show That In The First Contract That Is Short Term And With Goldman Sachs That Will Bring Us 1 Million In A Year. But After Providing 1 Million This Contract is Closed. So If We Wanna Earn More Revenue We Have To Chose Second Contract Which Is for Long Term With Co-Operation That Bring Us $100,000 Each Year, So In 10 Year We Earn $1 Million Revenue From That Contract But After That It Continue To Provide $100,000 Each Year So It Provide More Revenue Than The First Contract.

So We Have To Chose Second Contract Instead Of Choosing First One. Because First One Provide One time Revenue but The Second One Provide Long Term Benefits.