Answer questions correctly please 34An All-Pro defensive lineman is in contract negotiations. The team has offered thefollowing salary structure:45Time01623410.56All salaries are to be paid in lump sums. The player has asked you as his agent torenegotiate the terms. He wants a $9.6 million signing bonus payable today and acontract value increase of $1,600,000. He also wants an equal salary paid every threemonths, with the first paycheck three months from now. If the APR is 5.1 percentSalary$ 6,100,000$4,700,000$5,200,000$5,700,000$ 7,100,000$7,800,000$8,600,0005.700,000$ 7,100,000$7,800,000$8,600,000All salaries are to be paid in lump sums. The player has asked you as his agent torenegotiate the terms. He wants a $9.6 million signing bonus payable today and acontract value increase of $1,600,000. He also wants an equal salary paid every threemonths, with the first paycheck three months from now. If the APR is 5.1 percentcompounded daily, what is the amount of his quarterly check? Assume 365 days in ayear. (Do not round intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Quarterly check amountPhotoGrid

Effective annual rate:The effective annual rate (EAR) is a crucial concept in finance that…

Answered: An All-Pro defensive lineman is in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Year Contract A $1,200,000 $1,250,000 $1,250,000 $1,000,000 Contract B $500,000 $750,000 $750,000 $3,000,000 Contract C $1,500,000 $1,500,000 $750,000 $750,000 Contract A Contract B Contract C 1 Pick any contract! 2 3 As his adviser, which contract would you recommend that he accept? 4 SA
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 1 2 3 Contract 1 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. O a. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. b. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. O . Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. O d. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. O e. Contract 3 gives the quarterback the highest present value;…
Icahn Tackel just signed an $11.5 million, 4-year contract with an NFLteam. He received a signing bonus of $2 million; $1.5 million at the end ofyear 1; $3 million at the end of year 2; $3.5 million at the end of year 3; and$1.5 million at the end of year 4. What is the present value of his contract ifmoney can earn 4 percent per year?
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are listed below: 1 Contract 1 Contract 2 Contract 3 2 3 4 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $2,500,000 $3,000,000 $4,500,000 $5,500,000 $7,000,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1.
A rookie quarterback is negotiating his first NFL contract.His opportunity cost is 7%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept?
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 2 3 Contract 1 $3,500,000 $3,500,000 $3,500,000 $3,500,000 Contract 2 $2,000,000 $3,500,000 $4,000,000 $5,500,000 Contract 3 $6,500,000 $1,500,000 $1,500,000 $1,500,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. Oa. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. Ob. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. Oc. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. Od. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. Oe. Contract 1 gives the quarterback the highest present value;…
Company XYZ has hired you as a consultant. It has suggested two options to pay for your services: Option A: An initial payment of 100,000AED on signing the contract, 200,000AED end of the second year and 100,000 at end of the third year. Option B: An initial payment of 100,000AED on signing the contract, 150,000AED end of the first year, and 140, 000AED end of the second year. Which payment plan should you accept if the market interest rate is 10%? Briefly explain your choice.
A football player is offered a 5-year contract which pays him the following amounts: Year 1: $1.2 million Year 2: 1.6 million Year 3: 2.0 million Year 4: 2.4 million Year 5: 2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the football player asks his agent to negotiate a contract which has a present value of $1 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year annuity due. All cash flows are discounted at 10 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? $1.500 $1.659 $2.439 $1.989 None of the above
Ma1. MontyHardy recently rejected a $16,800,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $6,300,000 and annual payments of $2,100,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $18,460,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 $2,100,000 Year 2 2,180,000 Year 3 2,260,000 Year 4 2,340,000 Year 5 2,440,000 Year 5 balloon payment 7,140,000 Total $18,460,000 Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract?
A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.19 million Year 2: $1.62 million Year 3: $2.50 million Year 4: $2.51 million Year 5: $3.36 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the baseball player asks his agent to negotiate a contract that has a present value of $1.80 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year ANNUITY DUE. All cash flows are discounted at 12.00 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? (Express answer in millions. $1,000,000 would be 1.00)
A rookie of a professional sport is negotiating his first professional contract. His opportunity cost is 10%. Hehas been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end ofeach year. Terms of each contract are as follows:YearsS 1 2 3 4 dContract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000As his adviser, which contract would you recommend that he should accept?
a professional soccer player, is offered a 5-year contract that pays him the following amounts: Year 1: $1.2 million Year 2: 1.6 million Year 3: 2.0 million Year 4: 2.4 million Year 5: 2.8 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, Modrici asks his agent to negotiate a contract that has a present value of $1 million more than that which has been offered. Moreover, Modrici wants to receive his payments in the form of a 5-year annuity due. All cash flows are discounted at 8 percent. If the team were to agree to Modrici’s terms, what would be Modrici’s annual salary (in millions of dollars)? The answer on this site is wrong

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