What is the net present value of investment

Assignment Help Business Economics
Reference no: EM13851017

ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disnery 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 that worth?

Reference no: EM13851017

Questions Cloud

How much profit does the firm collect with the prices set : Suppose there are two types of customers for a cell phone service: undergraduates (U) and grad Students (G). The aggregate (inverse) demand curve for undergraduates is PU = 100 − 0.25QU and the aggregate (inverse) demand curve for the graduate studen..
How much consumer surplus is generated at the prices : A monopolist firm serves 6 consumers. Each of the consumers only buy one unit of the good. Two consumers buy one unit if the price is lower or equal than $100 and the other four consumers buy one unit if the price is lower or equal than $10. The firm..
Firm is restricted to set single price for both markets : Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2. Suppose the fi..
What is the profit-maximizing price and quantity : Suppose the firm A&B is a monopolist. What is the profit-maximizing price and quantity? How much profit does the firm collect? How much consumer surplus does the firm generate? What is the deadweight loss? Suppose consumers cannot see the differences..
What is the net present value of investment : ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disnery company has an opportunity interest rate equal to it..
Impact of infectious diseases on public health : Environmental health  Impact of infectious diseases on public health
Tax revenues to decline with higher excise taxes : Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise ..
Paper about the future view of environment : A paper about the future view of environment and community development. Using Leopold's "February" as a model, use this short writing assignment to describe what a tree planted today would ‘experience' occurring around it if the tree is lucky enou..
Exchange rate-what monetary or fiscal policy must it use : If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal ..

Reviews

Write a Review

Business Economics Questions & Answers

  Demand for clothing also footwear

Elucidate how would you express the demand for clothing also footwear. Risks involved holds the most risk to the subcontractor.

  Additional information might you need to construct

How might you construct a measure of the "change in the price level" What additional information might you need to construct your measure.

  Forecasting models can be divided into three groups

Forecasting models can be divided into three groups

  Illustrate a firm in monopolistic competition

Illustrate a firm in monopolistic competition that does not make a profit but rather a loss. Now illustrate how firm exit will change demand in the long run, allowing at least some firms to break even.

  Government raises the minimum wage

Suppose that the government raises the minimum wage to $10.10. Thinking of the four Marshall's Rules of Derived Demand as they apply to a particular industry, analyze the conditions under which job loss among teenage workers in that industry would be..

  Live on a small island

The remaining ten men are also farmers but they produce coconuts without shovels. Each such farmer can produce 50 coconuts per year.

  Labor supply curve to an occupation is upward sloping

Assuming the labor supply curve to an occupation is upward sloping, economic rent is earned by:

  Why these former employees faced difficulties

Why these former employees faced difficulties because the market for their very technical skills was declining. These workers were.

  America''s 12-year great depression

Eighty five years ago, America's 12-year Great Depression began with a crash. The bottom fell out of the stock market on October 24, 1929, signaling the start of the longest and deepest economic decline in the nation's history. Could the crash happen..

  Capital investment affect marginal physical product of labor

How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?

  Unemployment numbers drop as more jobless americans

Unemployment numbers drop as more jobless Americans Find out positions in local businesses. Which determinant of aggregate demand causes the change.

  Why would a country employ the use of a guest worker program

Why would a country employ the use of a guest worker program? Why would a country include offshore assembly provisions in its tariff code?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd