The Cowboys just signed a new rookie to a 5 year contract with a $10 Million signing bonus and $292,000 to be paid per month. Assume an 8% discount rate. What is his contract worth? (6 points)

3.) You want to bid on a company that will generate $50,000 a year for the next 3 years. At the end of the third year the company will be liquidated, and all the assets will be sold for $150,000. Assume a discount rate of 6%. How much should you bid? 

Answer rating: 100% (QA)

Answer Pb 2 PV of Annuity Annuity is series of cash flows that are deposited at regular intervals fo... View the full answer