Question 1 of 2 View Policies Current Attempt in Progress Year 1 Year 2 Year 3 Year 4 Novak Hardy recently rejected a $20,400,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $7,650,000 and annual payments of $2,550,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $22,330,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 5 $2,550,000 2,630,000 2,710,000 Click here to view factor tables Present value of old contract $22,330,000 eTextbook and Media Save for Later Present value of new contract 2,790,000 2,980,000 8,670,000 Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, eg. 1.2151 and final answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45)) In present value terms, the second contract is not better -/5 than the old one. !!! Attempts: 0 of 3 used Submit Answer

Novak Hardy recently rejected a $20,400,000, five-yese contract with the Vancouver Seals hochey team. The contract offer called for an irmediate signing bonus of $7,650,000 and annual nowments of $2,550,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $22,330,000, five year contract. This contract calls for annual increases and a balloon payment at the end of five years. Click here to view tactor tables Suppoge you are Hardy s a demt and you wish to evaluate the two contracts using a required rate of return of 15 percent in present value terms, how much better is the second contract? (Round present value foctor calalotions to 4 declmal places &&1.2151 and finol answen to 0 decimal places, es 125 . Inter negative amounts ining either o nejpative sim preceding the number es -45 or purentheses es (45)