Question: In 2 0 2 1 , a baseball player signed a contract worth $ 6 7 . 4 million. The contract called for $ 1

In 2021, a baseball player signed a contract worth $67.4 million. The contract called for $11.5 million immediately and a salary of $3.8 million in 2022, $10.1 million in 2023, $11.5 million in 2024, $9.7 million in 2025 and 2026, and $11.1 million in 2027. If the appropriate interest rate is 8 percent, what kind of deal did the player dig out of the dirt? Assume all payments other than the first $11.5 million are paid at the end of the contract year.
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.,1,234,567.89.
Present value
 In 2021, a baseball player signed a contract worth $67.4 million.

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!