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Four sports team offered Sam 5year contracts to play football. All four offers include an upfront signup bonus, end of year annual payments, and endofthe
Four sports team offered Sam 5year contracts to play football. All four offers include an upfront signup bonus, end of year annual payments, and endofthe contract termination bonus. Sam wishes to accept the highest contract amount in terms of todays $ value. His opportunity cost is 10%. What is the best offer? (compute the $ amount) Club Signup Bonus Annual Termination Bonus Cowboys 450,000 325,000 500,000 Seahawks 475,000 275,000 510,000 Lions 550,000 290,000 450,000 Patriots 350,000 350,000 650,000
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