Kick Is Looking to Play for a U

question 248

Multiple Choice

Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following
Three years. The market interest rate is 5 percent. Which offer is the better deal in terms of present
Value in millions?

• A) D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire
• B) D.C. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire
• C) Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United
• D) Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United

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Definitions:

Discontinuity

Represents breaks or interruptions in development or processes, suggesting non-linear or stage-like progressions in growth or change.

Atherosclerosis

A progressive disease in which lipid deposits accumulate in the inner lining of arteries, leading eventually to impaired circulation and heart disease.

Complications

Unexpected problems or conditions that arise during or after a medical procedure, treatment, or illness, making the situation more difficult to manage.

Pulmonary Vein

A blood vessel that carries oxygenated blood from the lungs back to the left atrium of the heart.