Value added from the acquisition of the player

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Reference no: EM131302160

The general manager of PRF club is considering paying $2.5 million per year for five years for a “star” player like you, along with a $2 million upfront signing bonus. He expects the player like you to enhance gate receipts and television advertising revenues by $3.5 million per year with no added costs. The club requires a 9% return on its investments. What would be the value added from the acquisition of the player?

Reference no: EM131302160

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