As the Manager of a Professional Football Team, You Just

question 17

Multiple Choice

As the manager of a professional football team, you just offered the kicker a two-year contract that pays $2 million at the end of each of the next two years. The kicker refuses the contract, stating he wants $3 million at the end of this year. If you offer $3 million at the end of this year, about how much will you have to offer at the end of next year to keep the present value of the contract the same as your original offer? Assume a 10% annual interest rate.

• A)$1 million
• B)$900,000
• C)$808,080
• D)$743,800

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Institutions dedicated to the practice and propagation of religious beliefs, serving as centers for worship, community, and spiritual guidance.

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Nonprofit organizations dedicated to conserving the natural environment, promoting sustainability, and addressing issues related to climate change and conservation.

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The process of gathering voluntary contributions of money or resources from individuals, corporations, government agencies, or others to support nonprofit organizations.

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The act of donating money, goods, services, and time to support charitable causes and contribute to the welfare of others.