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n 2023, an BA superstar signed a new contract. The contract has a "total value" of $109.32 million. According to the contract, the player will receive $30.57 million oday (t-0); $38.15 million in 2024 (t-1); and $40.60 million in 20251 (t=2). Assume hat the interest rate is 6.1% p.a., the present value of his new contract at year 2023 -0) is $__________ 1) 103.10 million 2) 101.79 million 3) 104.50 million 4) 99.10 million 5) 102.59 million

n 2023, an BA superstar signed a new contract. The contract has a "total value" of $109.32 million. According to the contract, the player will receive $30.57 million oday (t-0); $38.15 million in 2024 (t-1); and $40.60 million in 20251 (t=2). Assume hat the interest rate is 6.1% p.a., the present value of his new contract at year 2023 -0) is $__________ 1) 103.10 million 2) 101.79 million 3) 104.50 million 4) 99.10 million 5) 102.59 million

Essentials Of Investments
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 2023, an NBA superstar signed a new contract. The contract has a "total value" of $109.32 million. According to the contract, the player will receive $30.57 million today (t=0); $38.15 million in 2024 (t-1); and $40.60 million in 20251 (t=2). Assume that the interest rate is 6.1% p.a., the present value of his new contract at year 2023 (t=0) is $____________ 1) 103.10 million 2) 101.79 million 3) 104.50 million 4) 99.10 million 5) 102.59 million
Transcribed Image Text:In 2023, an NBA superstar signed a new contract. The contract has a "total value" of $109.32 million. According to the contract, the player will receive $30.57 million today (t=0); $38.15 million in 2024 (t-1); and $40.60 million in 20251 (t=2). Assume that the interest rate is 6.1% p.a., the present value of his new contract at year 2023 (t=0) is $____________ 1) 103.10 million 2) 101.79 million 3) 104.50 million 4) 99.10 million 5) 102.59 million
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