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How do you find the value of the player contract today

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Question - Suppose Salford City FC convinces a former player named Paul Scholes to come out of retirement and play for three seasons. The team offers the player $2 million in year 1, $3 million in year 2, and $4 million in year 3. To sweeten the deal Salford City FC also offers signing bonus of $500,000 payable at the beginning year.

Assuming end-of-year salary payments, how do you find the value of the player's contract today if the player has a discount rate of 8%?

Reference no: EM133110489

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