9. A business has been offered two different seven-year sponsorship deals. The first has an initial fee

Question:

9. A business has been offered two different seven-year sponsorship deals. The first has an initial fee of $90,000 the first year and an escalator of 8% each of the following six years. The second has an initial fee of $100,000 with a 4% escalator clause. Calculate the amount to be paid each year for both plans and total cost of the sponsorship. From the perspective of the business, which plan is the best? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Sports Marketing

ISBN: 978-1032112787

3rd Edition

Authors: Michael J Fetchko ,Donald P Roy ,Vassilis Dalakas

Question Posted: