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Net Present Value Calculated under the Discounted Cash Flow Income Approach As described in Sidebar 4 . C , the Silna family had a contract

Net Present Value Calculated under the Discounted Cash Flow Income Approach As described in Sidebar 4. C, the Silna family had a contract to receive 1/7 th of the television revenue of four NBA teams (Denver Nuggets, San Antonio Spurs, Brooklyn Nets, and Indiana Pacers) in perpetuity. The NBA's television deal running from the 2008-2009 season through the 2015-2016 season paid the family $ 18.9 million annually. Use the above information and the following parameters to calculate Silnas received their first payment on January 1,2009, and that the payments will continue annually thereafter. Assume that the Silnas are taxed at 35% for their income on this deal. Assume that their payments from this NBA deal will grow at 2% per year in perpetuity AFTER the final year of this contract (Alithough the Silnas' deal has ended in reality, for purposes of this exercise we will assume that the deal will continue forever).Assume a discount rate of 8%. Create a table that shows the results you found and gives a brief description of your steps, assumptions, and so forth.What would the value be if the discount rate were 10% and the NCF growth rate were 4%?

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