A star baseball player signs a contract that would pay a total of $16 million. The player receives $4 million upon signing, and $3 million every year for the next four years. (In other words, the player will receive $4 million today, $3 million in year from today, etc. ) At an interest rate of 8 percent, the sum of the present value of the contract is $ my answer should be a whole number

Answer rating: 100% (QA)

To calculate the present value of the contract we need to discount each payment back to its presen... View the full answer