Question
The Lions just signed their quarterback to a 10-year $50 million contract. Is this contract really worth $50 million? (Assume the discount rate is greater
The Lions just signed their quarterback to a 10-year $50 million contract. Is this contract really worth $50 million? (Assume the discount rate is greater than zero)
| Yes, because the payments over time add up to $50 million. | ||
| No, it is worth more because he can invest the money. | ||
| No, it would only be worth $50 million if it were all paid out today. | ||
| Yes, because his agent told him so. |
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
