An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time

Question:

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:

Time

Salary

0

$7,900,000

1

$4,500,000

2

$5,300,000

3

$6,100,000

4

$6,700,000

5

$7,700,000

6

$9,300,000


All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10 million signing bonus payable today and a contract value increase of $2 million. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the APR is 4.8 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

Question Posted: