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Question 21 (2.5 points) In 2018, the NBA superstar James Harden signed a new contract with Houston Rockets. The contract has a total value of
Question 21 (2.5 points) In 2018, the NBA superstar James Harden signed a new contract with Houston Rockets. The contract has a "total value" of $109.32 million. According to the contract, Harden will receive $30.57 million in 2018 (t=0); $38.15 million in 2019(t=1); and $40.60 million in 2020 (t=2). Assume that the interest rate is 8% p.a., the present value of James Harden's new contract at year 2018 (t=0) is $ ( 1) 100.70 million ( 2) 100.30 million 3) 100.10 million ( 4) 100.50 million
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