A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Year Contract A $1,200,000 $1,250,000 $1,250,000 $1,000,000 Contract B $500,000 $750,000 $750,000 $3,000,000 Contract C $1,500,000 $1,500,000 $750,000 $750,000 Contract A Contract B Contract C 1 Pick any contract! 2 As his adviser, which contract would you recommend that he accept? 3 4

A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Year Contract A $1,200,000 $1,250,000 $1,250,000 $1,000,000 Contract B $500,000 $750,000 $750,000 $3,000,000 Contract C $1,500,000 $1,500,000 $750,000 $750,000 Contract A Contract B Contract C 1 Pick any contract! 2 As his adviser, which contract would you recommend that he accept? 3 4

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Pls show complete steps and all parts
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A downtown bank promises its potential employees a $9000 sign-on bonus, an additional bonus of $ 13000 two years from now, an additional bonus of $ 16000 four years from now, and an additional bonus of $ 21000 six years from now. Lavanya was hired today but only intends to work for this bank for three years. What is the present value of this bonus payment structure to her? (Assume that money is worth 8% p.a. compounded quarterly) O a. $18235.66 O b. $ 20235.80 O c. $19411.07 O d. $ 20095.37 O e. $ 20449.97

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