Answer: D. The actual value of the contract is less than $30 million for each year he plays.
Explanation:
Given that Mark sherzer will be paid $15 million per year for 14 years reflects a contract whose value at the time of signing is ($15 million × 14) = $210 million. However, the payment would not be paid at the of signing but spread over a period of 14 years with $15 million being splashed out annually. However, considering the time value of money, whereby the present value of a fixed amount decreases with time. Hence in actual sense, the $210 million face worth of the contract will actually be less than $30 million [$210/7(playing years)] as time progresses on the fixed amount paid yearly due to reduction in the value of the present value as time progresses.
Answer:
foreign direct investment
Explanation:
Foreign direct investment (FDI) refers to a company from country A investing in another country B, either by setting up their own business operations or acquiring a domestic firm. FDI requires that the new company in country B is controlled and managed by the investor form country A.
Answer:
The annualy payment for theamortized loan is $6,802.44
Explanation:
First we will find the total loan payment TP for the $20,000 borrowed over the next four years with a annual return of 8%:
TP = $20,000 *(1+8%)^4
TP = $20,000 *(1.08)^4
TP = $20,000 *1.3605 = $27,209.7
The annual payments AN is obtained by dividing the TP into the 4 years:
AN = $27,209.7 / 4 = $6,802.44
Make money for the government
