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An athlete signs a 10-year endorsement deal with UA. Under this deal, the athlete will receive a $100,000 signing bonus. The rest of the deal
An athlete signs a 10-year endorsement deal with UA. Under this deal, the athlete will receive a $100,000 signing bonus. The rest of the deal defers payment until the end of year 6 when the athlete receives $250,000 a year for the last 5-years of the deal. What is the PV of the deal if discount rate is 7%?
Please show work using a financial calculator, thanks!:)
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