A professional sports contract offers $400 000 per year paid at the end of each of six
Question:
A professional sports contract offers $400 000 per year paid at the end of each of six years or $100 000 paid now, $200 000 paid at the end of each of the second and third years, and $800 000 paid at the end of each of the last three years. If money is worth 7.3%, which offer is preferable?
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Alternative 1 PV of Alternative 1 400 000 1 1073 6 0073 400 000 4722714 1 889 ...View the full answer
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Akshay Agarwal
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