1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liberstina [14]
3 years ago
9

A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-ye

ar 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 4 Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 $2,500,000 $3,000,000 $4,000,000 $5,000,000 Contract 3 $7,000,000 $1,500,000 $1,500,000 $1,500,000 As his advisor, which contract would you recommend that he accept?
Business
1 answer:
Sati [7]3 years ago
6 0

Answer:

Contract 3 has the higher present value. Therefore, it is the most convinient.

Explanation:

Giving the following information:

His opportunity cost is 10%.

Contract 1

$3,000,000

$3,000,000

$3,000,000

$3,000,000

Contract 2

$2,500,000

$3,000,000

$4,000,000

$5,000,000

Contract 3

$7,000,000

$1,500,000

$1,500,000

$1,500,000

We need to find the present value of each contract to compare.

PV= CF/(1+i)^

CF= cash flow

Contract 1:

PV= 3,000,000/(1.10) + 3,000,000/(1.10^2) + 3,000,000/(1.10^3) + 3,000,000/(1.10^4)

PV= $9,509,596.34

Contract 2:

PV= $11,172,392.6

Contract 3:

PV= $9,754,798.17

You might be interested in
On June 30, 2018, Yang Corporation granted compensatory stock options for 25,000 shares of its $24 par value common stock to cer
Charra [1.4K]

Answer:

$50,000

Explanation:

Since the service year is for a period of two year beginning from January 1 2018,the fair value of the shares options would be recognized over the two years on straight line basis,in other words $50,000 is the compensation expense for each i.e $100,000/2.

The appropriate entries would be a credit to paid in capital-share options account and debit goes to compensation expense in both years.

For instance ,2018 entries would:

Dr compensation expense $50,000

Cr paid in capital shares options      $50,000

6 0
3 years ago
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca
jolli1 [7]

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

6 0
2 years ago
Which phrase best completes the list?
Jobisdone [24]

Answer:a

Explanation:

8 0
3 years ago
Anyone who knows how to properly label a supply and demand graph please help! Draw a supply and demand graph for the given scena
goldfiish [28.3K]

The factor that would shift demand is the reduction in the price of laptops.

The equilibrium price  and quantity would decrease.

<h3>What is the result of the policy?</h3>

When the price of laptops are reduced, the quantity demand for laptops would increase while the demand for computers would fall. This is because computers and laptops are substitute goods.

As a result of a fall in the demand for computers, the demand curve would shift to the left. Equilibrium price and quantity would fall.

Please find attached the required diagram. To learn more about the demand curve, please check: brainly.com/question/25140811

#SPJ1

3 0
1 year ago
Marina and Nolan formed the MN Partnership. Marina contributed $20,000 of cash in exchange for her 50% interest in the partnersh
Natasha_Volkova [10]

Answer:

A) $25,000.

Explanation:

Marina's adjusted basis for her partnership interest at the end of the year = $20,000 (Marina's cash contribution) + $5,000 (Marina's share in the partnership's net taxable income) - $8,000 (distributions received by Marina) + $8,000 (Marina's share in the partnership's recourse liabilities) = $25,000

8 0
2 years ago
Other questions:
  • If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tic
    14·1 answer
  • There are numerous office supplies manufacturers. U.S.-based Esselte concentrates on selling filing products and desktop product
    6·1 answer
  • Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,300 of direct materials, $6,966 of di
    5·1 answer
  • What is the amount of money you still owe to their credit card company called everfi answers?
    8·2 answers
  • A history graduate student in the United States gets an $18,000 stipend per year. The U.S. sees significant inflation. How might
    13·2 answers
  • "The Small Business Administration (SBA) is a government agency designed to help" small business owners.B)SBA does not directly
    15·1 answer
  • Which of the following is not true about commission-only compensation plans for sales persons? Sales personnel are only compensa
    9·1 answer
  • “90 days same as cash deals” are a great bargain. True or false?
    15·2 answers
  • During a six month period, a department had planned sales of $75,000 and planned turnover of 2.6. Using the Basic Stock Method,
    9·1 answer
  • A web interface which presents integrated personalized business content delivered to senior managers is ________.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!