ESPN currently pays the NFL $1 1 billion per year for eight years for the right to exclusively televise Monday Night Football What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to its cost of capital of 9 percent Fox and CBS agreed t...

11 billion discounted at 9 for 8 years we get Therefore PV of 11 billio ...

ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively

Question:

ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the of this investment if the parent Disney Company has an opportunity interest rate equal to its of 9 percent. Fox and CBS agreed to pay $712 million and $622 million respectively for six years to televise Sunday afternoon NFC games. What was that worth?
Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...