Opportunity interest rate equal to its cost of capital

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ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televised Monday night football. What is the net present value of this investment if the parent Disney Company has an opportunity interest rate equal to its cost of capital of 9 percent. Fox and CBS agreed to pay $712 million and $622 million respectively for six years to televise Sunday afternoon NFC games. What was the worth?

Reference no: EM13833125

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