The University of Tennessee offers head coach Josh Heupel a new contract that guarantees him an annual salary of $4 million. The contract offers a total of 20 beginning-of-year payments (so the first paycheck willbe paid immediately, the next paycheck will be one year later, etc.). If the appropriate discount rate is 10%, what is the present value of this new contract?

Answer rating: 100% (QA)

To calculate the present value of the contract we need to discount each fut... View the full answer