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ACC 305 Week 3
Communication Case 6-3
Communication Case 6-3
on page 334
Harvey Alexander, an
all-league professional football player, has just declared free agency. Two
teams, the San Francisco 49ers and the Dallas Cowboys, have made Harvey the
following offers to obtain his services:
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 Harvey’s agent, Phil Marks, to evaluate the two contracts.
Write a short letter to Phil with your recommendation including the method you
used to reach your conclusion. Assume that Harvey has no preference between the
two teams and that the decision will be based entirely on monetary
considerations. Also assume that Harvey can invest his money and earn an 8%
annual return.
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