Question
Coming off a great senior year at the University of Nebraska, Tank Jones was drafted by the St. Louis Rams. Jones's three-year contract called for
Coming off a great senior year at the University of Nebraska, Tank Jones was drafted by the St. Louis Rams. Jones's three-year contract called for a $9.3 million signing bonus. His annual salary was $400,000 in year 1, $600,000 in year 2, and $900,000 in year 3.
a. For salary cap purposes, what was his annual compensation?
b. What was the economic value of the contract on signing day?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
