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N.B. Must be explain Question 2 (B) ================================================= 2. As a payment MS Dhoni will receive following payment at the end of next four years

N.B. Must be explain Question 2 (B)

=================================================

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2. As a payment MS Dhoni will receive following payment at the end of next four years $ 1,500; 1,500, 5,000 and 6,000 from BBL (Big Bash League). Then from the end of fifth year through end of sixteen years he will also receive 4,500 per year. Assume 7.50% discount rate is applied. A) What is the total present value of all future benefits? B) Assume, at the same time IPL (Indian Premier League) offers MS dhoni to provide $58,000 only today. Which proposal should MS dhoni select? Explain the logic briefly

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