After their recent almost-victory, the Cleveland Browns are looking to build a consulting company that can teach other NFL teams the intricacies of giving up 14 points in less than 60 seconds a remarkable feat that takes advanced communication so that the whole defense quits in perfect harmony.

They will establish the Seriously?OnlyInTheCLE! Inc. (SOCLE) to provide these consulting services. Like every good business venture, SOCLE is going to require upfront investments to get off the ground and a solid brand ambassador. SOCLE is looking into hiring the universally beloved Tom Brady as the face of the organization for their Lose Like a Winner campaign. Obviously, Tom doesnt come cheap. For four years (seasons) of part-time work, Tom will charge $1.5 million per season. Additionally, hiring Tom will require a personal assistant ($ 120,000 per season), an assistant to the personal assistant ($90,000 per season), and buying and maintaining a Learjet ($250,000 per season). Tom also demands a signing bonus of $800,000. Half of that bonus must be paid up front, the remaining half at the end of Season 3 of the contract.

SOCLE has commissioned the services of DubiousHaslam! Inc. (DUH!) to map out the cash flows for the next four seasons that they can expect from the investment. DUH! charges $950,000 (to be paid up-front) to conduct market research by calling other NFL owners. DUH! has come up with the estimates in Table 1 for the after-tax cash flows for the next 4 seasons. SOCLE discounts cash flows at 17%. .

Projected after- tax cash flow

Season 1 $800,000

Season 2 $1,900,000

Season 3 $3,500,000

Season 4 $3,000,000

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