Peter Guber and Joe Lacob bought the Golden State Warriors basketball team for ($ 450) million in
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Peter Guber and Joe Lacob bought the Golden State Warriors basketball team for \(\$ 450\) million in 2010. Forbes magazine estimated that the team's net income for 2009 was \(\$ 11.9\) million. If the new owners believed that they would continue to earn this annual profit (after adjusting for inflation), \(f=\$ 11.9\) million, forever, was this investment more lucrative than putting the \(\$ 450\) million in a savings account that pays a real interest rate of \(i=2 \%\) or \(i=3 \%\) ?
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