professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and o restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of ea 14 percent discount rate? Team's Offer Year Current Contract Counter offer 1 $7,418,672 $3,635,149 $4,822,137 2. $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 ent values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.)
professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and o restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of ea 14 percent discount rate? Team's Offer Year Current Contract Counter offer 1 $7,418,672 $3,635,149 $4,822,137 2. $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 ent values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.)
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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Transcribed Image Text:Problem 6.34
Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have
asked the team to restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of each of the
contracts using a 14 percent discount rate?
Year
Current Contract
Team's Offer
Counter offer
$7,418,672
$3,635,149
$4,822,137
2
$4,508,172
$4,733,581
$9,331,916
3
$2,672,364
$3,794,757
$3,580,968
4
$7,254,956
$15,598,155
$11,172,632
What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.)
Present value
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