What is the worth of the contract at the time of signing

Reference no: EM13298295

A record breaking running back signed a $30 million package with the Nebraska Lions. The terms of the contract were $3 million immediately, $2.4 million per year for the first five years (with the first payment after year one), and $3 million per year for the next five years (with the first payment at the end of year six). If the interest rate is 8% compounded annually, what is the worth of the contract at the time of signing?

Reference no: EM13298295

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