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An athlete was offered the following contract for the next three years: Year 1 2 3 Cash flows $5 million $7 million $9 million The
An athlete was offered the following contract for the next three years:
Year | 1 | 2 | 3 |
Cash flows | $5 million | $7 million | $9 million |
The athlete would rather have his salary in equal amounts at the END of each of the three years. If the opportunity cost for the athlete is 10%, what yearly amount would he consider EQUIVALENT to the offered contract?draw the timeline showing the known and unknown variables (Round your calculation to the nearest dollar)
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