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2. Your client, a player, has recently received multi-season contract offers from two clubs: Club A's offer entails annual payments at the beginning of
2. Your client, a player, has recently received multi-season contract offers from two clubs: Club A's offer entails annual payments at the beginning of each year (Jan 1st), comprising $3 million in 2024, $4 million in 2025, and $5 million in 2026. Club B's offer is contingent upon receiving an annual salary at the end of each year (Dec 31st), with payments of $3.1 million in 2024, $4.2 million in 2025, and $5.2 million in 2026. Assume a yearly interest rate of 6%, and answer the questions below, assuming that the present day is January 1st, 2024. a) What is the present value of Club A's offer? (10 pts) b) What is the present value of Club B's offer? (10 pts)
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
