An Athlete Was Offered the Following Contract for the Next

question 20

Multiple Choice

An athlete was offered the following contract for the next three years: The athlete would rather have his salary in equal amounts at the END of each of the three years.If the discount rate for the athlete is 10%,what yearly amount would she consider EQUIVALENT to the offered contract?

• A) $5.37 million per year
• B) $5.70 million per year
• C) $6.71 million per year
• D) $6.87 million per year

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Definitions:

Net Sales

The total revenue from sales of goods or services, minus returns, allowances, and discounts.