on in year 2, and P3 million in year 3. Assuming end of year payments of the proceeds of the contract, how would we find the value of hid contract today if the player has a discount rate of 12%, compounding semi-annually?

on in year 2, and P3 million in year 3. Assuming end of year payments of the proceeds of the contract, how would we find the value of hid contract today if the player has a discount rate of 12%, compounding semi-annually?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Ginebra San Miguel convince Stephen Curry to play for the basketball fanchise for three seasons. they offer the player P1 million in year 1, P2.5 million in year 2, and P3 million in year 3. Assuming end of year payments of the proceeds of the contract, how would we find the value of hid contract today if the player has a discount rate of 12%, compounding semi-annually?

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