A basketball player is offered the following contract today, Jan. 1, 2020: $2 million immediately, $2.40 million in 2020, $2.90 million in 2021, $3.60 million in 2022, and $3.80 million in 2023....








A basketball player is offered the following contract today, Jan. 1, 2020: $2 million immediately, $2.40 million in 2020, $2.90 million in 2021, $3.60 million in 2022, and $3.80 million in 2023. Assume all payments other than the first $2 million are paid at the end of the year.  If the appropriate discount rate is 10 percent per year, what is the present value of the deal?

Please show in Excel



Jun 09, 2022
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