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The Wilson Company is going to sign Roger Federer to a lifetime services contract. He gets $50 million three years from today. Then, he
The Wilson Company is going to sign Roger Federer to a lifetime services contract. He gets $50 million three years from today. Then, he gets $40 million payments starting at the end of year 3 for a total of 8 payments. At the end of 10 years, he gets an additional $66.6824 million payment. Assume a discount rate of 7.5% and annual compounding. What is the PV of his contract? use the $ symbol and round to the nearest million....should be a round number between $50 and $500.
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