suppose two athletes sign 10-year contracts for 80


Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments. In the other case, we're told that the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?

 

 

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Finance Basics: suppose two athletes sign 10-year contracts for 80
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