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Paul Pogba, who plays football for Manchester United in the English Premier League, has been offered two football boot endorsements as per below. Option 1
Paul Pogba, who plays football for Manchester United in the English Premier League, has been offered two football boot endorsements as per below. Option 1 a single payment of US$15 million now by Nike Option 2 US$7.5 million per year at the end of the next three years by Adidas Estimated cost of capital is 8.5% a.Which offer is most attractive? Please analyze both offers using the NPV and IRRmethods. b.Which is the most reliable method of analyzing the relative value of projects namely NPVor IRR? Please explain your reasoning.
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