QUOTE(MDZip @ Dec 15 2011, 06:27 PM)
QUOTE(Dave in Green @ Dec 15 2011, 06:05 PM)
Math lesson for the day:
Hurd was reportedly willing to pay $25k per kilo for 10 kilos of cocaine per week and $450 per pound for 1,000 pounds of marijuana per week.
That's $125k per week in cocaine and $450k per week in marijuana, or $575,000 per week.
Multiplied by 52 weeks, that's a grand total of $29,900,000 per year.
That's $30 million per year in drug dealing, or $90 million over the 3-year length of his $5.15 million NFL contract.
Math lesson #2. $5M keeps you pretty darn happy and legal. $90M is a lot, $0 is little if you get caught. $5M >>>> $0. I'll bet he didn't do a cost/benefit - risk/reward analysis. Should have gotten an education at UA instead of NIU.
$90 is his cost of dealing, not his benefit.
But to keep the math simple, let's say his retail price is double what he paid. Ignoring taxes, other operating costs, and the time value of money, if he estimated that there was a 50% chance he would get caught and a 50% chance he would not, dealing was a utility maximizing decision. $45M > $5M. This ignores the benefit of getting caught which eliminates the need for him to pay for his own housing, clothing, medical care and food for the next 5 to 15 years.
Obviously, the best solution depends on his dealing profit margin and the odds of being caught, but the former would have to be significantly below my example and the latter significantly higher for the optimal solution to change.