Purchase Solution


Not what you're looking for?

Ask Custom Question

1) Calculating Present Values. In the 1994 NBA draft, no one was surprised when the Milwaukee Bucks took "Big Dog" Robinson with the first pick. But Robinson wanted big bucks: a 13-year deal worth a total of $100 million. He had to settle for about $68 million over 10 years. His contract called for $2.9 million the first year, with annual raises of $870,000. So how big a bite did "Big Dog" really take? Assume a 12% discount rate. The answer is $34,006,704.09

2) EAR versus APR. You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30 year mortgage loan for 80 percent of the $1,450,000. purchase price. The monthly payment on this loan will be $9,800. What is the APR on this loan? The EAR? The answer is APR=9.55% EAR=9.98%

Need help putting cell formulas on excel spread sheet.

see attached word document

Purchase this Solution

Solution Summary

Present Value calculations and EAR versus APR is examined.

Purchase this Solution

Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Introduction to Finance

This quiz test introductory finance topics.