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Any advice or recommendation would be greatly appreciated You are the sport agent for a rising...

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Finance

Any advice or recommendation would be greatly appreciated

You are the sport agent for a rising basketball star justdrafted in the first round. Your client has two offers on the tableoption

  1. $90 million dollars over 5 years or option
  2. $30 million signing bonus and 40 million over the next 3yrs.

What option do you recommend? How does the time value of moneyimpact your decision?

Answer & Explanation Solved by verified expert
3.6 Ratings (659 Votes)
This question can be answered by understanding the time value of money The concept of time value of money is that a dollar today is more valuable than the same dollar obtained tomorrow To understand what is the difference between the values of the two dollars we need a discount factor which denotes    See Answer
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