NEED THIS IN EXCEL FORM PLEASE
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?
| 1- | ESPN | ||
| Year | cash flow | present value factor at 9% =1/(1+r)^n r=9% | present value of cash flow =cash flow*present value factor |
| 1 | 1.1 | 0.917431193 | 1.009174312 |
| 2 | 1.1 | 0.841679993 | 0.925847993 |
| 3 | 1.1 | 0.77218348 | 0.849401828 |
| 4 | 1.1 | 0.708425211 | 0.779267732 |
| 5 | 1.1 | 0.649931386 | 0.714924525 |
| 6 | 1.1 | 0.596267327 | 0.65589406 |
| 7 | 1.1 | 0.547034245 | 0.601737669 |
| 8 | 1.1 | 0.50186628 | 0.552052908 |
| present value of investment | sum of present value of cash flow | 6.09 | |
| 2- | Fox | ||
| Year | cash flow | present value factor at 9% =1/(1+r)^n r=9% | present value of cash flow =cash flow*present value factor |
| 1 | 712 | 0.917431193 | 653.2110092 |
| 2 | 712 | 0.841679993 | 599.2761552 |
| 3 | 712 | 0.77218348 | 549.7946378 |
| 4 | 712 | 0.708425211 | 504.3987503 |
| 5 | 712 | 0.649931386 | 462.751147 |
| 6 | 712 | 0.596267327 | 424.5423367 |
| present value of investment | sum of present value of cash flow | 3193.97 | |
| 3- | CBS | ||
| Year | cash flow | present value factor at 9% =1/(1+r)^n r=9% | present value of cash flow =cash flow*present value factor |
| 1 | 622 | 0.917431193 | 570.6422018 |
| 2 | 622 | 0.841679993 | 523.5249558 |
| 3 | 622 | 0.77218348 | 480.2981246 |
| 4 | 622 | 0.708425211 | 440.6404813 |
| 5 | 622 | 0.649931386 | 404.2573223 |
| 6 | 622 | 0.596267327 | 370.8782773 |
| present value of investment | sum of present value of cash flow | 2790.24 |
NEED THIS IN EXCEL FORM PLEASE ESPN currently pays the NFL $1.1 billion per year for...
ESPN currently pays the NFL $1.1 million 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 Disney 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 game. What was that worth?
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...