Problemdavid garrard just signed a contract with the, Ask an Expert

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Problem:

David Garrard just signed a contract with the Jacksonville Jaguars professional football team worth $60,000,000.00 over 7 years (Assume equal payments). What is the present value of this contract if the appropriate discount rate is 10%?

A. $81,318,608.57

B. $60,000,000.00

C. $41,729,304.15

D. $51,324,651.18

Additional Information:

This question is basically belongs to Finance as well as it is about computations of present value of a the contract by the footballer with a professional football team.

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