SoloFuego shoes wants to sign a new WNBA star to a 5-year deal that starts next year. She is expected to sell 50K shoes per year at a price of $130.00 per shoe. The variable cost of producing each shoe is $20.00, and the star has requested an up-front payment of $5M this year. The discount rate of the company is 9 percent. What is the net present value of signing the athlete?

21.39

56.11

16.39