Business
Business, 19.12.2019 02:31, pollywallythecat

The david kick is looking to play for a u. s. mls team. d. c. united is offering him $50 million for his first year. the chicago fire is offering him $25 million in his first year and $10 million per year for the following three years. the market interest rate is 5 percent.
which is the better deal in terms of present value in millions?

a) d. c. united, because it will pay him $50 million compared with $48.1 million from chicago fire
b) dc. united, because it will pay him $50 million compared with $46.8 million from chicago fire
c) chicago fire, because it will pay him $52.2 million compared with $50 million from d. c. united
d) chicago fire, because it will pay him $55 million compared with $50 million from d. c.

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Answers: 2

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