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professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and o restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of ea 14 percent discount rate? Team's Offer Year Current Contract Counter offer 1 $7,418,672 $3,635,149 $4,822,137 2. $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 ent values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.)

professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and o restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of ea 14 percent discount rate? Team's Offer Year Current Contract Counter offer 1 $7,418,672 $3,635,149 $4,822,137 2. $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 ent values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.)

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter5: Time Value Of Money
Section: Chapter Questions
Problem 20P: PV OF A CASH FLOW STREAM A rookie quarterback is negotiating his first NFL contract. His opportunity...
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Problem 6.34 Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of each of the contracts using a 14 percent discount rate? Year Current Contract Team's Offer Counter offer $7,418,672 $3,635,149 $4,822,137 2 $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.) Present value
Transcribed Image Text:Problem 6.34 Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. What are the present values of each of the contracts using a 14 percent discount rate? Year Current Contract Team's Offer Counter offer $7,418,672 $3,635,149 $4,822,137 2 $4,508,172 $4,733,581 $9,331,916 3 $2,672,364 $3,794,757 $3,580,968 4 $7,254,956 $15,598,155 $11,172,632 What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25.) Present value
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