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Textbook: Mangerial Economics Applications, Strategy, and Tatics 14th edition I need help with solving this Net...

Textbook: Mangerial Economics Applications, Strategy, and Tatics 14th edition

I need help with solving this Net Present Value problem with steps fully worked out formulas

ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disnery company has an opportunity interest rate equal to its cost of capital of 9 percent. Fox and CBS agreed to pay $712 million and $622 million respectively for six years to televise Sunday afternoon NFC games. What was that worth?

This example does not have the formulas and i can not figure out where the answers are coming from.

$1.1 billion discounted at 9% for 8 years we get,

Therefore PV of $1.1 billion = $1.1 billion * 5.534819 = $6.08830102609 billion I.e. $6088301026.09

$712 million & $622 million discounted at 9% for 6 years

$712 million * 4.4859 = $3193.97403619 million I.e $3193974036.19

$622 million * 4.4859 = $2790.24136307 million I.e. $2790241363.07

Total worth of Sunday afternoon NFC games = $5984215399.26

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