Contract worth at the time of contract signing

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A local newspaper headline blared: "Bo Smith signed for m.u.30 Million." A reading of the article revealed that on April 1, 2000, Bo Smith, the former record-breaking running back from Football University, signed a m.u.30 million package with the Dallas Rangers. The terms of the contract were m.u.3 million immediately: m.u.2.4 million per year for the first 5 years (first payment after 1 year) and m.u.3 million per year for the next 5 years (first payment at year 6). If Bo's interest rate is 8% per year, what would be his contract worth at the time of contract signing?

Reference no: EM13802604

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