What kind of deal did the running back scamper off with

Reference no: EM13255828

In 2011, a running back signed a contract worth $67.5 million. The contract called for $10.5 million immediately and a salary of $4.1 million in 2011, $10.7 million in 2012, $10.5 million in 2013, $10 million in 2014 and 2015, and $11.7 million in 2016.

If the appropriate interest rate is 11 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $10.5 million are paid at the end of the year.

Reference no: EM13255828

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