Today a running back signed a 5 year contract. The contract called for $7.8 million...
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Today a running back signed a 5 year contract. The contract called for $7.8 million immediately and a salary of $3.5 million in 1 year, $9.5 million in 2 years, $10 million in 3 years, $9.4 million in 4 years and, and $10.5 million in 5 years. If the appropriate interest rate is 5.2%, what is the worth of this deal to the player? Assume all payments other than the first $7.8 million are paid at the end of the year. Put answer in million $. E.g., $27.6 million as 27.6.
Today a running back signed a 5 year contract. The contract called for $7.8 million immediately and a salary of $3.5 million in 1 year, $9.5 million in 2 years, $10 million in 3 years, $9.4 million in 4 years and, and $10.5 million in 5 years. If the appropriate interest rate is 5.2%, what is the worth of this deal to the player? Assume all payments other than the first $7.8 million are paid at the end of the year. Put answer in million $. E.g., $27.6 million as 27.6.
$38.52
$44.27
$44.12
$38.85
$44.42
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