Question

In: Accounting

el-Firas, a professional football player is negotiating with YNWA United regarding his contract. His opportunity cost...

el-Firas, a
professional football player is negotiating with YNWA United regarding his contract. His
opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments
are guaranteed, and they would be made at the end of each year. Terms of each
contracts are as follows:)

Kontrak/Contract 1 Kontrak/Contract 2 Kontrak/Contract 3
Tahun 1 RM500,000 RM400,000 RM800,000
Tahun 2 RM500,000 RM500,000 RM300,000
Tahun 3 RM500,000 RM600,000 RM300,000
Tahun 4 RM500,000 RM700,000 RM300,000

a) Sebagai penasihat, kontrak yang manakah yang anda cadangkan untuk beliau terima?
Tunjukkan pengiraan anda.(As adviser, which contract would you recommend that he
accept? Show your working.) (8 markah/ marks)

(b) Katakan anda meminjam RM400,000 pada kadar 6% dan perlu membayar balik
dalam 7 ansuran yang sama pada akhir setiap 7 tahun akan datang. Berapa banyak
yang akan anda masih berhutang pada akhir tahun pertama, selepas anda membuat
pembayaran pertama?(Suppose you have borrowed RM400,000 at a rate of 6% and
must repay it in 7 equal installments at the end of each of the next 7 years. How much
would you still owe at the end of the first year, after you have made the first payment?)
(5 markah/ marks

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