hw_6_prob_4

hw_6_prob_4 -...

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#4 Season Salary Bonus Payment 2005 $2,500,000.00 $1,000,000.00 $3,500,000.00 2006 $1,750,000.00 $1,000,000.00 $2,750,000.00 2007 $4,100,000.00 $1,000,000.00 $5,100,000.00 2008 $4,700,000.00 $1,000,000.00 $5,700,000.00 2009 $5,000,000.00 $1,000,000.00 $6,000,000.00 2010 $6,200,000.00 $1,000,000.00 $7,200,000.00 2011 $6,750,000.00 $1,000,000.00 $7,750,000.00 2012 $6,000,000.00 $1,000,000.00 $7,000,000.00
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Unformatted text preview: +$6,000,000(P/F,7%,4)+$7,200,000(P/F,7%,5)+$7,750,000(P/F,7%,6)+$7,000,000(P/F,7%,7) =D3+D4*0.9346+D5*0.8734+D6*0.8163+D7*0.7629+D8*0.713+D9*0.6663+D10*0.6227 $34,411,125.00 Part A $6,389,300.00 Part B Since $6,500,000>$6,389,300, take the lump-sum. P contract =$3,500,000+$2,750,000(P/F,7%,1)+$5,100,000(P/F,7%,2)+$5,700,000(P/F,7%,3) P bonus =$1,000,000+$1,000,000(P/A,7%,7)...
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This note was uploaded on 08/31/2009 for the course PHYS 1234 taught by Professor Judge during the Fall '09 term at USC.

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