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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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