Assume a Baseball Player's Development in the Minor Leagues Yields

question 55

Multiple Choice

Assume a baseball player's development in the minor leagues yields -$250,000 per year for four years.If the player were to have a single big league season and be paid $350,000,how much revenue would the player need to generate to be considered a positive net present value project from the point of view of the team owner if the interest rate was 4%?

• A) $1.45 million
• B) $2.5 million
• C) $350,000
• D) $250,000

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