A top-five draft pick of FC Football, and his agent are evaluating three contract options
A top-five draft pick of FC Football, and his agent are evaluating three contract options.
Each option offers a signing bonus and a series of payments over the life of the contract. Paul uses a 10.25 per cent rate of return to evaluate the contracts.
Given the cash flows for each option below, which one should he choose?
Year Cash Flow Type Option A Option B Option C 0 Signing Bonus €3,100,000 €4,000,000 €4,250,000 1 Annual Salary €650,000 €825,000 €550,000 2 Annual Salary €715,000 €850,000 €625,000 3 Annual Salary €822,250 €925,000 €800,000 4 Annual Salary €975,000 €1,250,000 €900,000 5 Annual Salary €1,100,000 €1,000,000 6 Annual Salary €1,250,000Â
Answers
Status NEW
Posted 02 Jun 2017 03:06 PM
My Price 6.00
-----------
Attachments
file 1496419261-330008_1_8490644.xlsx preview (19 words )
So-----------lut-----------ion-----------Yea-----------rOp-----------tio-----------n A-----------Opt-----------ion----------- BO-----------pti-----------on -----------CCa-----------sh -----------flo-----------w T-----------ype-----------Sig-----------nin-----------g B-----------onu-----------sAn-----------nua-----------l S-----------ala-----------ryP-----------res-----------ent----------- va-----------lue-----------Opt-----------ion----------- B -----------sho-----------uld----------- be----------- se-----------lec-----------ted----------- as----------- it----------- ha-----------s h-----------igh-----------est----------- pr-----------ese-----------nt -----------val-----------ue.-----------
-----------
Not Rated(0)