Principle of Finance FIN 200 Assignment 3 Due Date: 5/5/2020 Dr. Hazem Marashdeh (20% of the total mark) This assignment covers Chapters 4 & 5 of the textbook. Marks will be deducted for late submission (20% every day). Use excel or word files. Show your calculations. Question 1 (4 marks) Ahmed is a professional football player in UAE. Aljazeera Club is negotiating with him to join the club. The Club presented two offers to Ahmed; the first one is to pay him a big bonus on the signing day of the contract and smaller payments in the future, or a small amount now and bigger payments in the future. Which option should Ahmed accept and why? What about Aljazeera Club, which option is better for them? Ahmed should accept the big bonus today and receive smaller payments in the future because the amount he is going to receive today has more value today than it will in the future. The money tends to grow every time so ahmad accepting this big bonus in the future would not be the same or beneficial than it would today.
- Spring '20
- uncle Abdallah, Aljazeera Club, uncle’s employer