What kind of deal did the running back scamper off with

Assignment Help Financial Management

Reference no: EM131186405

In 2015, a running back signed a contract worth $69.1 million. The contract called for $12 million immediately and a salary of $3.9 million in 2015, $10.3 million in 2016, $12 million in 2017, $9.8 million in 2018 and 2019, and $11.3 million in 2020.

If the appropriate interest rate is 9 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $12 million are paid at the end of the contract year.

Present value =?

Reference no: EM131186405

Questions Cloud

Find your net profit-loss from your hedged portfolio : Consider a stock paying continuous dividends of 1%. Assume r = 0.06, σ = 0.32 and today’s stock price of S0 = 33. You sell 100 Calls with strike K = 35 and expiration in 68 days (assume 365 days in a year). You also construct a delta-hedge to manage ..

Large capitalization stock : The expected return on any asset is dependent upon its beta. Explain what Beta is, why it is used and its relevance to investment decisions. Then select a large capitalization stock (GOOG, NFLX, KO, PEP, CMG, WMT, MSFT) and identify their company bet..

The project using all three methods using interest rates : Chamberlain Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 9 percent and a reinvestment rate of 6 percent on all of its projects. Year Cash Flow 0 –$ 16,200 1 7,300 2 8,500 3 8,100 4 6,900 5 – 4,300. ..

Interest expense would be recorded when making first payment : A new asset was purchase and financed through a $10,000 loan. It bears interest at 12% annually with equal monthly payments for 2 years (24 months) $470.43 per month in arrears. How much interest expense would be recorded when making the first paymen..

What kind of deal did the running back scamper off with : In 2015, a running back signed a contract worth $69.1 million. The contract called for $12 million immediately and a salary of $3.9 million in 2015, $10.3 million in 2016, $12 million in 2017, $9.8 million in 2018 and 2019, and $11.3 million in 2020...

Describe a potential capital expenditure project : Describe a potential capital expenditure project from the industry in which you now work or an industry in which you are interested. What is the project? Describe and provide an approximate value of the initial cash flow. Describe and provide an appr..

Two mutually exclusive alternatives are being considered : Two mutually exclusive alternatives are being considered for pollution control equipment. The study period is 9 years. If alternative A is selected, a portable system would be leased for the last 4 years at a cost of $10,000 per year including all ex..

Calculate the return on invested capital for each firm : Firms SH and MH are identical except for their financial leverage ratios and the interest they pay on debt. Each has $20 million in invested capital, has $4 million of EBIT, and is in the 40% federal-plusstate tax bracket. Calculate the return on inv..

What is the percentage change in the price of these bonds : Bond J has a coupon rate of 5.7 percent. Bond S has a coupon rate of 15.7 percent. Both bonds have ten years to maturity, make semiannual payments, and have a YTM of 12.4 percent. what is the percentage change in the price of these bonds? what is th..

User Account

All Pages