EXCEL ANSWER PLEASE A baseball player is offered a 5 year contract which pays him the following amounts Year 1 $1 2 million Year 2 $1 6 million Year 3 $2 0 million Year 4 $2 4 million Year 5 $2 8 million Under the terms of the agreement all payments are made at the end of each year Instead of accepting the contract, the player asks his agent to negotiate a contract which has a present value of $1 million MORE than that which has been offered Moreover, the player wants to receive his payments in the form of a 5 year annuity (payments at the end of the year) All cash flows are discounted at 10 If the team were to agree to the players terms, what would be the players annual salary 2) A baseball player is offered a 5 year contract which pays him the following amounts Year 1 $1 2 million Year 2 $1 6 million Year 3 $2 0 million Year 4 $2 4 million Year 5 $2 8 million Under the terms of the agreement all payments are made at the end of each year Instead of accepting the contract, the player asks his agent to negotiate a contract which has a present value of $1 million MORE than that which has been offered Moreover, the player wants to receive his payments in the form of a 5 year annuity (payments at the end of the year) All cash flows are discounted at 10 If the team were to agree to the player's terms, what would be the player's annual salary (20 points)

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Posted on Sep 28, 2024

EXCEL ANSWER PLEASE! A baseball player is offered a 5-year contract which pays him the following amounts: Year 1: $1.2 million Year 2: $1.6 million

EXCEL ANSWER PLEASE!

A baseball player is offered a 5-year contract which pays him the following amounts:

Year 1: $1.2 million

Year 2: $1.6 million

Year 3: $2.0 million

Year 4: $2.4 million

Year 5: $2.8 million

Under the terms of the agreement all payments are made at the end of each year.

Instead of accepting the contract, the player asks his agent to negotiate a contract which has a present value of $1 million MORE than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year annuity (payments at the end of the year). All cash flows are discounted at 10%. If the team were to agree to the players terms, what would be the players annual salary?

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2) A baseball player is offered a 5-year contract which pays him the following amounts: Year 1: $1.2 million Year 2: $1.6 million Year 3: $2.0 million Year 4: $2.4 million Year 5: $2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the player asks his agent to negotiate a contract which has a present value of $1 million MORE than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year annuity (payments at the end of the year). All cash flows are discounted at 10%. If the team were to agree to the player's terms, what would be the player's annual salary? (20 points)