1. 6.1 Present values with multiple cash flows A basketball athlete has signed a three-year, $25 million contract. The details provide for an immediate cash bonus of $2 million. The player is to receive $5 million in salary at the end of the first year, $8 million the next and

$10 million at the end of the last year. Assuming a 15 per cent discount rate, is this package worth $25 million? If not, how much is it worth?