Sam Bradford, a number 1 draft pick of the St. Louis Rams, and his agent are evaluating
Question:
Sam Bradford, a number 1 draft pick of the St. Louis Rams, 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. Bradford uses a 10.25 percent rate of return to evaluate the contracts. Given the cash flows for each option, which one should hechoose?
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Year Option B Signing Bonus $3,100,000 s 715,000 S 975,000 6 $1,250,000
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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