Question
Derrick Coleman, a forward for the New Jersey Nets, has been offered a seven-year, $ 75 million contract, where he will be paid $9 million
Derrick Coleman, a forward for the New Jersey Nets, has been offered a seven-year, $ 75 million contract, where he will be paid $9 million a year for the next three years, and $12 million a year for the following four years. The appropriate discount rate is 8%.
a. What is the present value of this contract?
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
