Reference no: EM132641785

-A sport organization has a commitment from a sponsor for a $17,000 payment in 3 years. What is the present value of that payment at an interest rate of 3%? 

-This morning I invested my $3,000 tax refund. If I don't touch this investment until I retire in 30 years, how much money will I have accumulated at an interest rate of 5%?

-A professional athlete is owed a bonus payment of $2 million due today. The team he plays for is currently low on cash and offers the player a deferred payment of $2.5 million five years from now instead of the payment due today. Which should the player take - the money due today or the deferred payment? Assume an interest rate of 4%. Show your work. Hint: you can technically make your case using present value OR future value, but be sure to use the "correct" numbers depending on which formula you choose.

-1. What is the present value of a deferred signing bonus of $4,000,000 that will be paid at the end of one year, assuming an annual rate of return of 5.5%?