in 2018 a running back signed a contract worth $63.9 million. The contract called for $11.5 million immediately and a salary of $3.3 million in 2018, $9.1 million in 2019, $11.5 million in 2020, $9.2 million in 2021 and 2022, and $10.1 million in 2023. If the appropriate interest rate is 10 percent what kind of deal did the running back scamper off with? Assume all payments other than the first $11.5 million are paid at the end of the contract year.
in 2018 a running back signed a contract worth $63.9 million. The contract called for $11.5 million immediately and a salary of $3.3 million in 2018, $9.1 million in 2019, $11.5 million in 2020, $9.2 million in 2021 and 2022, and $10.1 million in 2023. If the appropriate interest rate is 10 percent what kind of deal did the running back scamper off with? Assume all payments other than the first $11.5 million are paid at the end of the contract year.
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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in 2018 a running back signed a contract worth $63.9 million. The contract called for $11.5 million immediately and a salary of $3.3 million in 2018, $9.1 million in 2019, $11.5 million in 2020, $9.2 million in 2021 and 2022, and $10.1 million in 2023.
If the appropriate interest rate is 10 percent what kind of deal did the running back scamper off with? Assume all payments other than the first $11.5 million are paid at the end of the contract year.
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