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
lapo4ka [179]
3 years ago
8

A famous quarterback just signed a contract for $18.6 million, providing $3.1 million a year for 6 years. A less famous receiver

signed a contract for $17.6 million, providing $5 million now and $2.1 million a year for 6 years. The interest rate is 9%. a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) c. Who is better paid? Quarterback Receiver
Business
1 answer:
barxatty [35]3 years ago
6 0

Answer:

a) The PV of the quarterback's contract is 13.91 million

b) The PV of the receiver's contract is 14.42 million .

c) The Receiver is better paid  

Explanation:

a)

PV of quarterback

= 3.1/1.09 + 3.1/1.09^2 + 3.1/1.09^3 + 3.1/1.09^4 + 3.1/1.09^5 + 3.1/1.09^6

= 3.1/0.09*(1 - (1/1.09)^6)

= 13.91 million

Therefore, The PV of the quarterback's contract is 13.91 million .

b)

PV of receiver's contract

= 5 + 2.1/1.09 + 2.1/1.09^2+2.1/1.09^3+2.1/1.09^4+2.1/1.09^5+2.1/1.09^6

= 5 + 2.1/0.09*(1 - (1/1.09)^6)

= 14.42 million

Therefore, The PV of the receiver's contract is 14.42 million .

c) Since the PV of the quarterback's contract is less than the PV of the receiver's contract, The Receiver is better paid.

You might be interested in
If possible at either your place of employment or your school, attempt to determine how easy it would be to perform dumpster div
victus00 [196]
<span>Working for a mental health agency, it is next to impossible to access information. Our agency is required by law to maintain all client records for 7 years in a secured area (limited access by Executive Director & Director of Operations, No access by employees). After 7 years they are to be disposed of properly. Our agency shreds our documents personally as to not allow a private company to do so, hence there is no breach of confidentiality. Then a private company (document disposal company) removes the shredded documentation for destruction. So it would be impossible (or at least, improbable) to obtain access to our organization information through dumpster diving.</span>
3 0
3 years ago
Suppose a large apartment complex is infested with cockroaches that have never been exposed to glucose-baited poison. a new tena
lord [1]
<span>The success of the glucose-averse cockroaches in their new environment depends on the future use of glucose-baited poison in the apartment. If glucose-baited poison is not used, it is likely that the resident cockroaches will outcompete the new cockroaches, as the resident cockroaches will not exclude glucose-containing foods from their diet. However, the use of glucose-containing poison in the apartment will provide the new cockroaches a distinct selective advantage, as they will survive to reproduce, whereas the majority of the resident cockroaches will die.</span>
7 0
3 years ago
Which scenario below most accurately describes the process by which a technological change can affect employment patterns across
finlep [7]

Answer:

A technological advance makes it possible to produce more of good X with less labor. As a result, labor is released from producing good X. Some of this labor ends up producing goods Y and Z.

Explanation:

8 0
3 years ago
An incumbent monopolist producing more output than necessary might be able to keep potential rivals from entering
wariber [46]
The answer will indeed be A
5 0
3 years ago
Read 2 more answers
List and explain the classification of materials handling equipments
maw [93]

Answer:

the different types of handling equipment can be classified into four major categories transport a comment position a common unit learn formation equipment and storage equipment

7 0
2 years ago
Other questions:
  • Kevin has just finished paying off his loan. He was assessed a service charge of $422. He paid off the principal and the interes
    13·2 answers
  • In a manufacturing company at present, the pattern shop and the maintenance department are located in the same room. One large c
    9·1 answer
  • What are three things not to do while driving and three things to do while driving?
    5·2 answers
  • Which statements are true about assessing the effectiveness of a strategic plan?
    12·1 answer
  • The formula Nequalspplus0.02p models the new​ population, N, of a town with current population p if the town is expecting popula
    11·1 answer
  • which strategy specifies the firm's overall direction in terms of its general orientaion toward growth, the industries or market
    9·1 answer
  • On June 30 Gomez Corporation discontinued its operations in Mexico. On September 1 Gomez disposed of the Mexico facility at a pr
    8·1 answer
  • Maria, a certified financial planner, must also be a licensed attorney to be appointed Trustee of a bankruptcy estate. A. True B
    6·1 answer
  • Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27
    13·1 answer
  • Sales is $90 per unit; direct material is $30 per unit; direct labor is $12 per unit; overhead is $5 per unit and $2,100 per mon
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!