You are the prospective owner of an NBA franchise. Your intent is to buy a team and own it for five years. Go to the below website to get your data.
http://www.forbes.com/nba-valuations/

Pick one of the following NBA teams:

Boston Celtics
Chicago Bulls
Dallas Mavericks
Golden State Warriors
Houston Rockets
LA Lakers
Miami Heat
New York Knicks
Oklahoma City Thunder
Phoenix Suns
Portland Trail Blazers
Sacramento Kings
San Antonio Spurs
Toronto Raptors
Utah Jazz

1.Derive the team’s after-tax cash flow for the most recent season, assuming a tax rate of 40%. Show your work on a spreadsheet. Important note: The only cost listed by the website is the player payroll. However, you can figure out the franchise’s other costs because its operating income is listed. Assume that the franchise is going to depreciation its player payroll over a five-year period to get its depreciation expense.

2. Assume the after-tax cash flow will not change over the next five years. Assume the after-tax interest rate is 4%. Show the discounted present value of the after-tax cash flow.

3. How much would you be willing to pay to own this franchise?