Homework Help is Here – Start Your Trial Now!
Business
Finance
But what is the present value of his contract (at the time it was made) using an annual interest rate of 6%?

But what is the present value of his contract (at the time it was made) using an annual interest rate of 6%?

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

The sum of the above nominal cash flows is indeed $330 million!  But what is the present value of his contract (at the time it was made) using an annual interest rate of 6%?   Please assume the signing bonus is received today (at time t=0), and then the remaining payments are made to Harper at the end of each subsequent year such that the $10 million payment is made 1 year from today, etc.

Enter answer in millions of dollars, rounded to the nearest 10th, as in "123.4" 

 
### Bryce Harper's Historical Signing with the Philadelphia Phillies ***$330 million*** **Bryce Harper**, widely regarded as the most prized free agent in baseball history, agreed to a record-breaking, 13-year $330 million deal with the Philadelphia Phillies on Thursday. The MLB Network first reported the deal and The Associated Press, NBC Philadelphia, and ESPN also confirmed Harper's contract. (Feb 28, 2019) [Read the full article here](http://www.nbcnews.com/news/sports/bryce-harper-signs-record-330M-contract-with-the) --- ### Contract Breakdown for Bryce Harper's Deal with the Philadelphia Phillies Sources tell ESPN: * **2019**: $10M (plus $20M signing bonus) * **2020**: $26M * **2021**: $26M * **2022**: $26M * **2023**: $26M * **2024**: $26M * **2025**: $26M * **2026**: $26M * **2027**: $26M * **2028**: $26M * **2029**: $22M * **2030**: $22M * **2031**: $22M ### Visual Description The image includes a lineup of photos featuring Bryce Harper, donning different Phillies' apparel, signifying his new association with the team. Included is also a text excerpt summarizing the agreement and its historical significance in sports. The right section details the specific annual breakdown of the 13-year, $330 million contract Harper signed with the Phillies. This information is valuable for understanding the economic impact of major league sports contracts and the financial commitments teams make to secure star talent.
Transcribed Image Text:### Bryce Harper's Historical Signing with the Philadelphia Phillies ***$330 million*** **Bryce Harper**, widely regarded as the most prized free agent in baseball history, agreed to a record-breaking, 13-year $330 million deal with the Philadelphia Phillies on Thursday. The MLB Network first reported the deal and The Associated Press, NBC Philadelphia, and ESPN also confirmed Harper's contract. (Feb 28, 2019) [Read the full article here](http://www.nbcnews.com/news/sports/bryce-harper-signs-record-330M-contract-with-the) --- ### Contract Breakdown for Bryce Harper's Deal with the Philadelphia Phillies Sources tell ESPN: * **2019**: $10M (plus $20M signing bonus) * **2020**: $26M * **2021**: $26M * **2022**: $26M * **2023**: $26M * **2024**: $26M * **2025**: $26M * **2026**: $26M * **2027**: $26M * **2028**: $26M * **2029**: $22M * **2030**: $22M * **2031**: $22M ### Visual Description The image includes a lineup of photos featuring Bryce Harper, donning different Phillies' apparel, signifying his new association with the team. Included is also a text excerpt summarizing the agreement and its historical significance in sports. The right section details the specific annual breakdown of the 13-year, $330 million contract Harper signed with the Phillies. This information is valuable for understanding the economic impact of major league sports contracts and the financial commitments teams make to secure star talent.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Rate Of Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS