10B — August 9 - 22, 2019 — New Jersey — M id A tlantic
Real Estate Journal
www.marej.com
N ew J ersey
THE PROFESSOR'S CHALLENGE
Question:
As we approach the start of the NFL season, the Professor thought that a sports related finance question was appropriate.
Suppose a 1st round NFL quarterback for the NY Jets signs a 3 year, $25 million contract. Terms of the contract call for an immediate $2 million bonus followed by $5 million, $8 million and then $10 million payable at the end of each of the three years. Assuming a 15% discount rate, is the quarterback’s total contract worth $25 million? If not, how much is it worth? First correct answer emailed will receive a complimentary admission to one of MAREJ sponsored conferences in New Jersey, Pennsylvania or Delaware!
For more information on MAREJ sponsored conferences go to marej.com/conf
All responses should be emailed to the Kim Brunet, Associate Publisher:
kbrunet@marejournal.com by August 26th, 2019
Include your name & email address on all submissions. One submission per person. All decisions by the associate publisher will be at her sole discretion.
Meet The Professor Ronald M. Shapiro Assistant Professor of Professional Practice Finance and Economics Department Rutgers Business School Rutgers University
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