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22-04-2024
Business

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The Chiefs are going to sign Travis Kelce to a lifetime services contract. He gets $12 million one year from today. Then, he gets $16 million payments starting at the end of year 3 for a total of 7 payments. At the end of 10 years, he gets an additional $50.218 million payment. Assume a discount rate of 9% and annual compounding. What is the PV of his contract?

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