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hardy recently rejected a 25,200,00, five year contract with the Vancouver seals hockey team. the contract offer called for an immediate signing bonus of 9,450,000
hardy recently rejected a 25,200,00, five year contract with the Vancouver seals hockey team. the contract offer called for an immediate signing bonus of 9,450,000 and annual payment of $3,150,000. to sweeten the deal the president of player personal for the seals has now offered a 27,490,000 five year contract. this contract calls for annual increases and a balloon payment at the end of five years. Year 1 $3,150,000 Year 2 3,230,000 Year 3 3,310,000 Year 4 3,390,000 Year 5 3,700,000 Year 5 balloon payment 10,710,000 Total $27,490,000 Click here to view factor tables Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, es 1.2151 and final answers to decimal places, eg. 125. Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (451) Present value of old contract Present value of new contract In present value terms, the second contract is than the old one. Save for Later Attempts: 0 of 1 used Submit
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