An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:...

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 7,400,000 1 $ 6,000,000 2 $ 6,500,000 3 $ 7,000,000 4 $ 8,400,000 5 $ 9,100,000 6 $ 9,900,000 All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10.9 million signing bonus payable today and a contract value increase of $2,900,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the interest rate is 6.4 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Solutions

Expert Solution

jeff jeffy answered 2 months ago

Next > < Previous

Related Solutions

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:...

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 6,100,000 1 4,700,000 2 5,200,000 3 5,700,000 4 7,100,000 5 7,800,000 6 8,600,000 All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants a signing bonus of $9.6 million payable today and a contract value increase of $1,600,000. He also wants an equal salary paid every...

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:...

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 6,700,000 1 $ 5,300,000 2 $ 5,800,000 3 $ 6,300,000 4 $ 7,700,000 5 $ 8,400,000 6 $ 9,200,000 All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10.2 million signing bonus payable today and a contract value increase of $2,200,000. He also wants...

An All-Pro offensive lineman is in contract negotiations. The team has offered the following salary structure...

An All-Pro offensive lineman is in contract negotiations. The team has offered the following salary structure (note: today is Year=0). The appropriate discount rate is 12% per year, compounded monthly. Year Salary ($) 1 $3,500,000 2 $4,000,000 3 $4,500,000 4 $5,000,000 a) The lineman wants the timing of the payments modified. (He is happy with the overall value of the contract – so no increase in overall value, measured in PV terms -- is needed.) Instead of the initial terms...

An All-Pro offensive lineman is in contract negotiations. The team has offered the following salary structure...

An All-Pro offensive lineman is in contract negotiations. The team has offered the following salary structure (note: today is Year=0). The appropriate discount rate is 12% per year, compounded monthly. Year Salary ($) 1 $3,500,000 2 $4,000,000 3 $4,500,000 4 $5,000,00 a) The lineman wants the timing of the payments modified. (He is happy with the overall value of the contract – so no increase in overall value, measured in PV terms -- is needed.) Instead of the initial terms...

Boston Bruins – the ice hockey team - has offered Bobby Esposito the following two contract...

Boston Bruins – the ice hockey team - has offered Bobby Esposito the following two contract options. The first contract offer is $3 million a year for 5 years (first payment a year from now) plus a signing bonus of $1 million (paid immediately). The second five year contract offers a first-year payment of $2.5 million dollars (paid one year from now), but after that the payments grow at an annual rate of 12%. Assuming the interest rate is 5%,...

how can a company structure e-mail negotiations to avoid “accidnetally” forming a contract?

Wilbur has been offered a job at a salary that would put him in the 24%...

Wilbur has been offered a job at a salary that would put him in the 24% marginal tax bracket. In addition to his salary, he would receive health insurance coverage. Another potential employer does not offer health insurance but has agreed to match the first offer on an after-tax and insurance basis. The cost of health insurance comparable to that provided by the other potential employer is $9,000 per year. How much more in salary must the second potential employer...

You are the ceo of a facility and Aetna has offered you a contract. Develop the...

You are the ceo of a facility and Aetna has offered you a contract. Develop the P&L statement for the following assumptions between 0 and 65,000 procedures in increments of 2,500: •Aetna is offering you a contract that will pay you $55 per procedure •Variable costs per procedure = $37.00 •Fixed costs = $1,000,000 •You will need to hire an additional salaried employee with volumes of 40,000 or more at an annual cost of $50,000 please show excel sheet so...

You are ceo of a facility and Aetna has offered you a contract . Develop the...

You are ceo of a facility and Aetna has offered you a contract . Develop the P&L statement for the following assumptions between 0 and 55,000 procedures in increments of 2,500 : •Health way is offering you a contract that will pay you a flat fee of $2,750,000 across all ranges of volume •Supply costs = $42.50 per procedure •You incur a hazardous disposal fee of $2.50 per procedure •Fixed costs = $1,200,000 •You will need to hire an additional...

Your factory has been offered a contract to produce a part for a new printer. The...

Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.01 million per year. Your upfront setup costs to be ready to produce the part would be $8.05 million. Your discount rate for this contract is 8.1%. a. What is the IRR? b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the...

Subjects