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Naomi Osaka is considering a sponsorship opportunity to promote Wilson tennis racquets. The deal will pay her: -$11.68mm upfront -a $5mm annuity for 10 years
Naomi Osaka is considering a sponsorship opportunity to promote Wilson tennis racquets. The deal will pay her:
-$11.68mm upfront
-a $5mm annuity for 10 years starting 3 years from now
- a terminal payment of $15mm in 17 years.
What is the value of the contract to Naomi today? Assume a 6% discount rate. Round to the nearest million $ and use the $ symbol. $63mm would be the form of a correct answer
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