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Unformatted text preview: Dear Mr. Marks, RE: Agent for Harvey Alexander I have reviewed both contracts for Mr. Alexander and have to come the following conclusion based on the information given. The future value of the first offer is 1*1.08^5 + 1.5*1.08^5-1/.08 = 1.47+8.8 = $10.27 million, while the future value of the second option is 2.5*1.08^5 + 1*1.08^5-1/.08 = 3.67+5.87 = $9.54 million. Keeping in view the difference in future value of both offers, the offer of 49ers seems better, therefore it should be accepted. If Mr. Alexander were to choose the 49ers he would make after investing his money $10.27 million. If Mr. Alexander were to choose the cowboys he would make after investing his money $9.54 million. Although the Cowboys offer seems very generous because of the larger signing bonus since M r. Alexander is looking into investing his money he will make more money if he goes with the 49ers contract making over half a million more with their offer. Thank you, Kenroy Fletcher...
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This note was uploaded on 11/15/2011 for the course SCIENCE 207 taught by Professor Reale during the Fall '11 term at Ashford University.
- Fall '11