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Communication Case 5–6 Present value of annuities LO5–8 An all-league professional football player has just declared free agency. Two teams, the San Francisco 49ers and the Dallas Cowboys, have made the following offers to the player: 49ers: $1 million signing bonus payable immediately and an annual salary of $1.5 million for the five- year term of the contract. Cowboys: $2.5 million signing bonus payable immediately and an annual salary of $1 million for the five- year term of the contract. With both contracts, the annual salary will be paid in one lump sum at the end of the football season. Required: You have been hired as a consultant to evaluate the two contracts. Write a short letter with your recommendation including the method you used to reach your conclusion. Assume that the player has no preference between the two teams and that the decision will be based entirely on monetary considerations. Also assume the player can invest money and earn an 8% annual return.

          Communication Case 5–6 Present value of annuities LO5–8
An all-league professional football player has just declared free agency. Two teams, the San Francisco 49ers and the Dallas Cowboys, have made the following offers to the player:

49ers: $1 million signing bonus payable immediately and an annual salary of $1.5 million for the five- year term of the contract.
Cowboys: $2.5 million signing bonus payable immediately and an annual salary of $1 million for the five- year term of the contract.

With both contracts, the annual salary will be paid in one lump sum at the end of the football season.

Required:
You have been hired as a consultant to evaluate the two contracts. Write a short letter with your recommendation including the method you used to reach your conclusion. Assume that the player has no preference between the two teams and that the decision will be based entirely on monetary considerations. Also assume the player can invest money and earn an 8% annual return.

communication case 56 present value of annuities lo58 an all league professional football player has just declared free agency two teams the san francisco 49ers and the dallas cowboys have m 17358

Added by David J.

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