Reference no: EM132543467

Question 1: In 2005, soccer player David Beckham signed a contract reported to be worth $51 million. The contract called for $2 million immediately and $10 million in 2006. The remaining $39 million was to be paid as $9 million in 2007, $7 million in 2008, $6 million in 2009, $5 million in 2010, $4 million in 2011 and in 2012, $2 million in 2013, and $1 million in 2014 and 2015. Assuming all the payments, except the first $2 million are paid at the end of each year and the discount rate is 9%, what kind of deal did the soccer player snag?

Question 2: What is the present value of the following set of cash flows at a 10% discount rate?

Year               1           2           3                4

Cash Flow       $600     -$600    $600             -$600

Question 3: What is the future value of the set of cash flows (from the previous problem) 4 years from now? Assume an interest rate of 10%.

Question 4: Starting today, George is going to contribute $300 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount George contributes. If both George and his employer continue and he can earn a monthly rate of .68%, how much will George have in his retirement account 35 years from now