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Maximum the current costs of moving

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Suppose that a baseball player eligible for free agent status signs a contract with a new team that promises to pay him $100,000 more than his current team for each of the next three years. Assuming the discount rate is 6%, what is the maximum the current costs of moving could be and still have this investment be worthwhile?

This was flagged for missing information, but it is exactly how the professor provided the problem. I know that the answer is $ 267,301 (assuming no other benefits of the move and all costs occur int he current period). I need to know what steps are taken to arrive at that answer.

Reference no: EM132162568

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