Name: Sport Finance Lab 2 1. Assume that Elena Delle Donne, a WNBA superstar, has signed a contract that will pay her $100,000 immediately, $110,000 at the end of one year, and a $5,000 raise each year for the remaining 5-year contract. Assume that she can earn a 4% annual return investing the money. What is this contract equivalent to in one lump sum today? Use table B.2 in appendix B on the pdf to calculate the present value of Elena Delle Donne's Cash Flows over 5 years. Year Cash Flow ($) Present Value Factor Present Value (5) 0 1.0000 100,000 1 .9615 105.765 .9246 106,329 100,000 110,000 115,000 120,000 125,000 130,000 ? Nimi in 4 ? ? ? ? Total ? 2. Use table B.3 in appendix to solve the present value of Coach Sakan's contract (use p.39 on pdf for help solving). Coach Sakan has signed a contract extension that would pay him $8,500,000 in salary for 9 years. What is the present value and the present value factor for this annuity assuming a 6% discount rate