You recently started a new career in sports career management. One of your new clients Stephen Curry
Fantastic news! We've Found the answer you've been seeking!
Question:
The annual salary schedule proposed by the clippers is as follows $0 in 2021, 5 million in 2022, 9 million in 2023, 30 million in 2024 and 30 million in 2025. Stephen Curry currently has the following salary payments promised by the Golden State Warriors: 5 million in 2021, 9 million in 2022, 7 million in 2023, 40 million in 2024 and 60 million in 2025. In addition to these paymentsStephen Curry has marketing deals with three companies totaling 16million in annual revenues for the next 5 years. These would not be lost if he moves to Clippers team. If he joins the clippers, you are certain that he would land a new marketing deal with local firms adding 8million in annual revenues for the next 5 years. Assume that all payments are made on December 31 of the year in which they are due, that there is no uncertainty about future payment between Clippers and Golden State and that the decision criteria is purely financial the interest rate is 6%.
what is the NPV for moving ?
what is the NPV for staying?
should he switch teams ?
Related Book For
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date: