In 2018, a football player signed a contract reported to be worth $66.6 million. The contract was to be paid as $9.2 million in 2018, $10.5 million in 2019, $11.6 million in 2020, $11.7 million in 2021, $11.7 million in 2022, and $11.9 million in 2023. If the appropriate interest rate is 12 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value
In 2018, a football player signed a contract reported to be worth $66.6 million. The contract was to be paid as $9.2 million in 2018, $10.5 million in 2019, $11.6 million in 2020, $11.7 million in 2021, $11.7 million in 2022, and $11.9 million in 2023. If the appropriate interest rate is 12 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value
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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Transcribed Image Text:In 2018, a football player signed a contract reported to be worth $66.6 million. The
contract was to be paid as $9.2 million in 2018, $10.5 million in 2019, $11.6 million in
2020, $11.7 million in 2021, $11.7 million in 2022, and $11.9 million in 2023.
If the appropriate interest rate is 12 percent, what kind of deal did the player snag?
Assume all payments are paid at the end of the year. (Do not round intermediate
calculations and enter your answer in dollars, not millions of dollars, rounded to 2
decimal places, e.g., 1,234,567.89.)
Present value
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