Question: In 2011, a running back signed a contract worth $60.4 million. The contract called for $11.5 million immediately and a salary of $2.8 million in

In 2011, a running back signed a contract worth $60.4 million. The contract called for $11.5 million immediately and a salary of $2.8 million in 2011, $8.1 million in 2012, $11.5 million in 2013, $8.7 million in 2014 and 2015, and $9.1 million in 2016.

If the appropriate interest rate is 10 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $11.5 million are paid at the end of the year.

present value?

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