Nic Is a Great Basketball Player with a Long Professional

question 4

Multiple Choice

Nic is a great basketball player with a long professional career in front of him.He plays for a European professional team that has made him a very interesting offer.If he will take a "below market" salary beginning one year from today,they will guarantee a 5% annual raise forever - even after he stops playing ball.If the offer is for a $5,000,000 salary to be received one year from today with subsequent payments as described,what is the present value of the contract offer if the cash flows should be discounted at a rate of 12%?

• A)$71,428,571
• B)$75,000,000
• C)$41,666,667
• D)$43,750,000

Understand the implications of job design on employee tasks, training needs, and task identity.

Recognize the importance of competencies, task significance, and autonomy in job design and employee motivation.

Grasp the concept of job families and the impact of environmental factors on job design.

Understand the concept of price elasticity and its effect on sales volume and net operating income.