Business, 19.03.2020 07:21 dpazmembreno

A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. The interest rate is 10%.

Answers: 1

Show answers

Answers

Answer from: AIhunter2884

The question is missing the requirement. The complete question is,

A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. Who is better paid? The interest rate is 10%.

The less famous receiver is better paid.

Explanation:

To calculate who is better paid, we need to calculate the present value of the amount the famous quarterback and less famous receiver will receive.

The present value is the sum of future cash flows discounted back to today's terms using the discount rate or interest rate.

PV of $15m for famous quarterback:

The famous quarter back will receive the 15 million in equal payments for five years. We consider the payments are received at the end of period. We calculate the 5 year discount factor for such annuity at 10%.

Discount factor = (1 - (1 + 10%)^-5) / 10% = 3.79079The discount factor is calculated using the simple formula for Present value of ordinary annuityThe PV = $3 million * 3.79079 = $11.37237 million

PV of $14 million for less famous receiver:

The less famous receiver is receiving $4 million today which are worth exactly the same that is $4 million. Apart from that, the remaining payments of $10 million is received in ordinary annuity of $2 million a year. We calculate the PV of $4 million today and $2 million annuity for five years to calculate the value of $14 million today

The annuity discount factor is same as the interest rate and time period is same.The PV = $4 million + $2 million * 3.79079 = $11.58158 million

Answer from: Quest

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues, with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

Answer from: Quest

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.

Another question on Business

Business, 21.06.2019 22:50

Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?

Answers: 2

Answer

Business, 22.06.2019 10:30

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

Answers: 2

Answer

Business, 22.06.2019 11:30

Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?

Answers: 1

Answer

Business, 22.06.2019 13:00

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be:

Answers: 1

Answer

You know the right answer?

A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A l...

Questions