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Suppose a Professional Sports Team Convinces a Former Player to Come

Question 123

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Suppose a professional sports team convinces a former player to come out of retirement and play for three seasons.They offer the player $2 million in year 1,$3 million in year 2,and $4 million in year 3.Assuming end of year payments of the salary,how would we find the value of his contract today if the player has a discount rate of 12%?


A) Suppose a professional sports team convinces a former player to come out of retirement and play for three seasons.They offer the player $2 million in year 1,$3 million in year 2,and $4 million in year 3.Assuming end of year payments of the salary,how would we find the value of his contract today if the player has a discount rate of 12%? A) B) C) D)
B) Suppose a professional sports team convinces a former player to come out of retirement and play for three seasons.They offer the player $2 million in year 1,$3 million in year 2,and $4 million in year 3.Assuming end of year payments of the salary,how would we find the value of his contract today if the player has a discount rate of 12%? A) B) C) D)
C) Suppose a professional sports team convinces a former player to come out of retirement and play for three seasons.They offer the player $2 million in year 1,$3 million in year 2,and $4 million in year 3.Assuming end of year payments of the salary,how would we find the value of his contract today if the player has a discount rate of 12%? A) B) C) D)
D) Suppose a professional sports team convinces a former player to come out of retirement and play for three seasons.They offer the player $2 million in year 1,$3 million in year 2,and $4 million in year 3.Assuming end of year payments of the salary,how would we find the value of his contract today if the player has a discount rate of 12%? A) B) C) D)

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