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7. In 2005, soccer player David Beckham signed a contract reported to be worth $51...

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Accounting

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7. In 2005, soccer player David Beckham signed a contract reported to be worth $51 million. The contract called for $2 million immediately and $10 million in 2006. The remaining $39 million was to be paid as $9 million in 2007, $7 million in 2008, $6 million in 2009, $5 million in 2010, $4 million in 2011 and in 2012, $2 million in 2013, and $1 million in 2014 and 2015. Assuming all the payments, except the first $2 million are paid at the end of each year and the discount rate is 9%, what kind of deal did the soccer player snag? 8. What is the present value of the following set of cash flows at a 10% discount rate? Year 1 2 3 4 $600 -$600 Cash Flow $600 - $600 9. What is the future value of the set of cash flows (from the previous problem) 4 years from now? Assume an interest rate of 10%. 10. Starting today, George is going to contribute $300 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount George contributes. If both George and his employer continue to do this and he can earn a monthly rate of .68%, how much will George have in his retirement account 35 years from now

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