![]() ![]() Statements is accurate? Is Noah’s estimate of the value of Flynn’sĬontract accurate on either a nominal or discounted Given your worksheet calculations, which of the following Values to calculate another answer, do not round.ġ. Round them to the nearest dollar, however when using those same When entering intermediate values as answer choices, be sure to Out all interest rate factors to four decimal places. Round all dollar amounts to the nearest whole dollar and carry Rate that should be used in a discounting calculation. Therefore, it may be necessary to compute the appropriate interest Monthly interest rates are used to discount monthly cash flows. Interest rates should be used to discount annual cash flows, and Rate that is used to discount the cash flow. Remember that the timing of a cash flow affects the interest The endorsement proceeds are paid in accordance with the terms Their value should be based on the salary in effect at the time the Which they are available and are paid at the end of theĬorresponding year(s), unless specifically stated differently. Assume that all bonuses are earned in each of the years for Note: To clarify possible sources of confusion Values to evaluate the contract and answer the related Newfound wealth, you and Flynn have agreed that any funds receivedĬould be invested to earn 6.00%, compounded monthly.Ĭomplete the following worksheet by inserting the appropriate To review the terms of the contract and verify Noah’s calculations.Īfter an extended conversation about what he’ll do with his Rereading the email twice and calling his family, Flynn called you $2,382,400-assuming receipt of all possible bonuses. The email describes the general terms andįlynn is so excited! According to Noah, the contract is worth ![]() Moreover, Flynn’s contract is being revised to Springfield Dusties, the Baldies’s corresponding Major Leagueīaseball (MLB) team. Never-Enough, indicating that he is being called up to the Two weeks ago, on his three-year anniversary with the team,įlynn received the following email from his agent, Noah Reliable changeup pitch, he achieved a 18-2 win–loss record, anĮarned run average (ERA) of 2.23, and 166 strikeouts in 147.2 Using hisĩ9 mph fastball, an impeccable curve ball and slider, and a Runner-up for the Minor League Player of the Year award. Last season, he was a starting pitcher for a double-A (AA)-levelīaseball team, the Ketchum Baldies last year, he was the first Years old and has always dreamed of playing in the big leagues. Flynn Fireballer has been playing baseball since he was five ![]()
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