In 2021, a baseball player signed a contract worth $65.7 million. The contract called for $11 million immediately and a salary of $3.7 million in 2022, $9.9 million in 2023, $11 million in 2024, $9.6 million in 2025 and 2026, and $10.9 million in 2027. If the appropriate interest rate is 7 percent, what kind of deal did the player dig out of the dirt? Assume all payments other than the first $11 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

In 2021, a baseball player signed a contract worth $65.7 million. The contract called for $11 million immediately and a salary of $3.7 million in 2022, $9.9 million in 2023, $11 million in 2024, $9.6 million in 2025 and 2026, and $10.9 million in 2027. If the appropriate interest rate is 7 percent, what kind of deal did the player dig out of the dirt? Assume all payments other than the first $11 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In 2021, a baseball player signed a contract worth $65.7 million. The contract called for $11 million immediately and a salary of $3.7
million in 2022, $9.9 million in 2023, $11 million in 2024, $9.6 million in 2025 and 2026, and $10.9 million in 2027. If the appropriate
interest rate is 7 percent, what kind of deal did the player dig out of the dirt? Assume all payments other than the first $11 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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