what is the net present value of Luc's services?

with the formulas please

Transcribed image text: Question 13 of 16 1/1 Show Attempt History Your answer is correct. The owners of Les Tigres de Trois-Rivires hockey club are considering a deal with an older, established club whereby they can acquire the services of Pierre Luc, a very high scorer and great gate attraction, in exchange for Robert McCain (currently paid $15,000 annually). The established club would also receive $500,000 cash from Les Tigres. The owners' accountants have assembled the following data: Estimated useful life of Luc 5 years Estimated residual value of Luc $20,000 Estimated useful life of McCain 5 years Estimated residual value of McCain None Current cash offer for McCain received from another club Applicable desired rate of return 10% $50,000 Other information: Year Additional Gate Receipts Because of Luc $330,000 300,000 Luc's Salary $60,000 70,000 Additional Expenses of Handling Higher Volume $33.000 30,000 1 2 9 W PE X10 tv Question 13 of 16 Estimated useful life of McCain Estimated residual value of McCain Current cash offer for McCain received from another club Applicable desired rate of return 5 years None $50,000 10% Other information: Year 1 Additional Gate Receipts Because of Luc $330,000 300,000 200.000 100,000 40,000 Luc's Salary $60,000 70,000 80,000 80,000 Additional Expenses of Handling Higher Volume $33,000 30,000 20,000 10.000 2 3 4 5 72.000 4.000 Click here to view PV table. Based on your analysis of the data, calculate the net present value of Luc's services. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg, 1.25124. If the net present value is negative, use elther a negative sign preceding the numberes. -45 or parentheses e.g. (45).) 2 W 9 ity