| PV of a cash flow stream
A rookie quarterback is negotiating hisfirst NFL contract. His opportunity cost 10 percent. He has been offered three possible 4 year contracts. Payments are guaranteed and they would be made at the end of each year. Terms of each contract are:
1 -------------------2------------------3------------------4
Contract 1 $3,000,000 3,000,000 3,000,000 3,000,000
Contract 2 $2,000,000 3,000,000 4,000,000 5,000,000
Contract 4 $ 7,000,000 1,000,000 1,000,000 1,000,000
As his advisor which would yu recommend that he accept?
Please help with this question?
| 
Linear Mode
