Question: Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $54,000 today $63,000

Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows:

$54,000 today $63,000 at the end of year 1 $78,000 at the end of year 2 $88,000 at the end of year 3

If the discount rate is 5.7%, what is the value of her contract today?

Answer Format: Positive number rounded to 2 decimal places. (An answer of $100.125 would be entered as 100.13)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A $1,000 face value bond has a coupon rate of 4% and 14 years to maturity. If the yield to maturity is 5.8%, what is the price of the bond in percentage of par? Interest is paid annually.

Q:

Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $52,000 today $69,000 at the end of year 1 $76,000 at the end of year 2 $83,000 at...

Q:

Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $58,000 today $67,000 at the end of year 1 $73,000 at the end of year 2 $89,000 at...

Q:

Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $56,000 today $67,000 at the end of year 1 $75,000 at the end of year 2 $85,000 at...

Q:

Question 21 3 pts You have a portfolio that is invested 50% in the risk-free asset and 50% in the market. If the Treasury Bill rate is 1.4% and the market risk premium is 17%, what is the...

Q:

Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $56,000 today $67,000 at the end of year 1 $75,000 at the end of year 2 $85,000 at...

Q:

Question 19 3 pts Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $58,000 today $67,000 at the end of year 1 $73,000 at the end of...

Q:

ASSIGNMENT Based on the information provided in the case study (posted below), please prepare the budget for the 2004-05 season. When preparing the budget consider the following: Madrid is...

Q:

For the Case Study assignment, please respond to the following questions based on the attached (directly below) Beckham Case Study Reading: 1) Based on the case study and through your own personal...

Q:

MCO2019. MLET I. Introduction Major League Baseball's hot stove was burning in full force, and agent Derek Powers was starting to feel the heat. Pitcher Rolando Mateo, his first client with the...

Q:

Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 1) Started the business by issuing common stock for $7,500 cash 2) Paid cash to...

Q:

1. What are some of the benefits of budgeting? The article which is (Budget deficit, national debt, and government spending: Is now the right time to cut deficit and reduce national debt?)Identifies...

Q:

which of the following statements are true if the nvp of a project is - 4 0 0 0 and the required rate of return is 5 % a . The project s IRR is less than 5 % . b . The required rate of return is...

Q:

? ? ? ? ? ? ? ? ? ? ? t h e o r y h o l d s t h a t p e o p l e a r e m o t i v a t e d t o b e h a v e i n w a y s t h a t p r o d u c e d e s i r e d c o m b i n a t i o n s o f e x p e c t e d o u...

Q:

Review the etiquette tips. Which three tips dont you use often now that will help you in the future? How will you change your etiquette?

Q:

What are your thoughts on women showing cleavage at work? Should cleavage be covered or shown? Why? In your opinion, is a low neckline meant to be seductive, with intentional sexual innuendo?

Q:

Do a job search for the job you are interested in getting. Go online to one or more of the following websites (or others related to your field) to find job opportunities: www.collegejournal.com (jobs...