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The Royals are moving out of Kauffman Stadium, and need to find a buyer of the facility. They plan to use the proceeds as principal
The Royals are moving out of Kauffman Stadium, and need to find a buyer of the facility. They plan to use the proceeds as principal on an investment product. They have considered the following financial products: Product A offers a 3.5% fixed, monthly compounded interest; Product B offers a 3.5% fixed, quarterly compounded interest; and Product C offers a 5% fixed annual simple interest. The Royals have narrowed down their buyer to 3 offers: Buyer 1 will pay $200,000,000 tomorrow (June 1, 2024); Buyer 2 will pay $225,000,000 in 2 years (June 1, 2026); Buyer 3 will pay $240,000,000 in 4 years (June 1, 2028) Which Buyer and Product will your company pursue? Explain why this is the best decision for the Royals, as well as how you came to this conclusion
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