In 2021, a baseball player signed a contract worth $62.1 million. The contract called for $12 million immediately and a salary of $2.9 million in 2022, $8.3 million in 2023, $12 million in 2024, $8.8 million in 2025 and 2026, and $9.3 million in 2027. If the appropriate interest rate is 11 percent, what kind of deal did the player dig out of the dirt? Assume all payments other than the first $12 million are paid at the end of the contract year. Note: 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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- In 2018 a football player signed a comtract reported to be worth $98.5 million. The contract was to be paid as $14.7 million in 2018, $14.9 million in 2019, $17.1 million in 2020, $17.2 million in 2021, $17.2 million in 2022, and $17.4 million in 2023. If the appropriate interest rate is 9 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.In 2021, a basketball player signed a contract reported to be worth $72.4 million. The contract was to be paid as $10.2 million in 2021, $11.3 million in 2022, $12.6 million in 2023, $12.7 million in 2024, $12.7 million in 2025, and $12.9 million in 2026. If the appropriate interest rate is 7 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: 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 valueIn 2021, a basketball player signed a contract reported to be worth $52.1 million. The contract was to be paid as $6.7 million in 2021, $8.5 million in 2022, $9.1 million in 2023, $9.2 million in 2024, $9.2 million in 2025, and $9.4 million in 2026. If the appropriate interest rate is 7 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: 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.
- 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 March 2018, the Buffalo Bills signed Star Lotulelei to a contract reportedly worth $50 million. Lotulelei's salary (including bonuses) was to be paid as $17.1 million in 2018, $8.9 million in 2019, $7.5 million in 2020, and $8.25 million in 2021 and 2022. If the appropriate interest rate is 11 percent, what kind of deal did the defensive tackle sack? Assume all payments are paid at the end of each year. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) Present valueLast month, Major League Baseball star Rafael Devers signed a 10-year contract extension with the Boston Red Sox. Instead of taking the full amount of his salary over the course of the 10 years covered by his contract, he chose to defer receipt on almost a quarter of the total value of the contract. He will receive that deferred portion of the contract in biannual installments until the year 2043. Why make a deal like this? What factors should be taken into consideration? What are the pros and cons?
- A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.19 million Year 2: $1.62 million Year 3: $2.50 million Year 4: $2.51 million Year 5: $3.36 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the baseball player asks his agent to negotiate a contract that has a present value of $1.80 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year ANNUITY DUE. All cash flows are discounted at 12.00 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? (Express answer in millions. $1,000,000 would be 1.00)a professional soccer player, is offered a 5-year contract that pays him the following amounts: Year 1: $1.2 million Year 2: 1.6 million Year 3: 2.0 million Year 4: 2.4 million Year 5: 2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, Modrici asks his agent to negotiate a contract that has a present value of $1 million more than that which has been offered. Moreover, Modrici wants to receive his payments in the form of a 5-year annuity due. All cash flows are discounted at 8 percent. If the team were to agree to Modrici’s terms, what would be Modrici’s annual salary (in millions of dollars)? The answer on this site is wronga professional soccer player, is offered a 5-year contract that pays him the following amounts: Year 1: $1.2 million Year 2: 1.6 million Year 3: 2.0 million Year 4: 2.4 million Year 5: 2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, Modrici asks his agent to negotiate a contract that has a present value of $1 million more than that which has been offered. Moreover, Modrici wants to receive his payments in the form of a 5-year annuity due. All cash flows are discounted at 8 percent. If the team were to agree to Modrici’s terms, what would be Modrici’s annual salary (in millions of dollars)?
- A football player is offered a 5-year contract which pays him the following amounts: Year 1: $1.2 million Year 2: 1.6 million Year 3: 2.0 million Year 4: 2.4 million Year 5: 2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the football player asks his agent to negotiate a contract which has a present value of $1 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year annuity due. All cash flows are discounted at 10 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? $1.500 $1.659 $2.439 $1.989 None of the aboveIn 2022, Blair Corporation paid its CEO base compensation of $700,000 and a performance bonus of $500,000; the CEO was hired in January 2020. How much of the compensation can Blair deduct?George’s Major League Baseball contract pays him $908287 million today, $2528930 million in 1 year, $5140446 million in 2 years and $7679387 million in 3 years. Assuming a rate of interest of 4.9% per year compounded annually, what is George’s total contract worth today?