Question
Kim and Kanye have hired you to determine who has the best endorsement offer. Kim has been offered the job as a spokesperson for the
Kim and Kanye have hired you to determine who has the best endorsement offer.
Kim has been offered the job as a spokesperson for the National Library Foundation. The NFL will pay her $2,000 per month starting ten years from today for a total of 120 months. She then will recieve $40,000 per year for six years with the first payment of $40,000 occuring one month after the last payment of $2,000. She also will recieve $70,000 every year for five years with the first of these coming six months from today.
Kanye has been offered a job as the spokesperson for the National Literacy Society. The NLS will pay him $30,000 per year for twenty years with the first of these coming today. He will also recieve $400,000 six months after his last payment of $30,000. Finally he will receive $500,000 fifty years from today - he was worried that he would not have enough for a 75th birthday gift for himself.
They want to know who has the best offer in today's dollars. Assume an 8% monthly rate for your analysis.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started