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Solve for NPV of full contract - $180,470 bonus for any year Luke is selected to play in the Pro Bowl All Star game (
Solve for NPV of full contract 
- $180,470 bonus for any year Luke is selected to play in the Pro Bowl All Star game ( 25% probability in each Canadian Football League - $1,130,470 immediate signing bonus - $2,000,000 at the end of Years 1 through 3 - Only signing bonus is guaranteed ( 80% probability of being on team each year) $4,430,900 $3,979,200 $5,109,670 $6,074,000 - $180,470 bonus for any year Luke is selected to play in the Pro Bowl All Star game ( 25% probability in each Canadian Football League - $1,130,470 immediate signing bonus - $2,000,000 at the end of Years 1 through 3 - Only signing bonus is guaranteed ( 80% probability of being on team each year) $4,430,900 $3,979,200 $5,109,670 $6,074,000
Solve for NPV of full contract
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
