Ican Tackel just signed a $11.5 million, 4-year contract with an NFL team. He received a signing bonus of $2 million. He will then be paid the following amounts over his 4 year contract: $1.5 at the end of year 1; $3 million at the end of year 2; $3.5 million at the end of year 3; and $1.5 million at the end of year 4. What is the present value of his contract if money can earn 8% per year?
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
I calculated an answer of the present value to be $9.9 million ($2.0 million bonus received currently + $7.9 million based on the amounts spread over the 4 year contract). If you let me know if this is the correct answer, I will show you how I calculated this present value (the $9.9 million ).