In March 2018, the Buffalo Bills signed Star Lotulelei to a contract reportedly worth $50million. Lotulelei's salary (including bonuses) was to be paid as $17.1 million in 2018, $8.9million in 2019, $7.5 million in 2020, and $8.25 million in 2021 and 2022. If theappropriate 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 intermediatecalculations and enter your answer in dollars, not millions, rounded to 2 decimalplaces, e.g., 1,234,567.89.)Present value

Present value is an estimate of the present value of future cash values that may be received at a…

Answered: In March 2018, the Buffalo Bills signed…

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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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 above
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In 2021, a basketball player signed a contract reported to be worth $60.8 million. The contract was to be paid as $8.2 million in 2021, $9.7 million in 2022, $10.6 million in 2023, $10.7 million in 2024, $10.7 million in 2025, and $10.9 million in 2026. If the appropriate interest rate is 10 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 value
ohn purchased a 150-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (b) Assume that John sold this bank bill at a simple interest rate of 3.17% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 9.924% b. 10.905% c. 11.182% d. 10.647%
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On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 6.100 units of Comfort Office Keyboard to one of its clients, Bionics Inc., at a fixed price of $103,700, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $61,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to…
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The employees of XYZ Ltd are entitled to 10 weeks’ long-service leave (LSL) after 10 years of continuous service with the company. The pre-conditional period is 5 years. The following information has been compiled for calculating the liability for long service leave as at 30 June 2021. Number of employees as at 30 June 2021 Aggregate projected salary when LSL vests Aggregate annual salaries for 2020-2021 Years of service as at 30 June 2021 The expected Government bond rate at the time when LSL vests Probability that LSL will vest 22 $950,000 $560,000 4 7% 24% 28 $350,000 $250,000 6 4% 73% 24 $190,000 $180,000 9 3% 100% The total long service leave provision reported in the balance sheet as at 30 June 2020 was $59,982. Assume that no LSL was taken during the year. Required: Based on the information provided above calculate the LSL Entitlement that needs to be booked as at 30 June 2021.

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