What is the value of the investment opportunity today

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1. A new start-up company promises to pay an investor each quarter for the next two years. The company will pay $21,150.00 per quarter for the first four quarters, and then $25,675.00 per quarter for the following four quarters. If the investor wants a 11.32% APR return with quarterly compounding, what is the value of the investment opportunity today? Round to 2 decimal places.

2. A despised football coach is scheduled to make $945,400.00 per year for the next 8 years. The first payment is scheduled to be made exactly one year from today. After a 3-9 record last year, the athletic department would like to buy out the remaining 8 years of his contract. The athletic department wants to value the remaining years with a 10.00% discount rate. The coach’s agent would like to use 4.00%. What is the present value of the agent's offer? Round to 2 decimal places.

Reference no: EM131952865

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