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10. Problem 5.20 (PV of a Cash Flowstream) each year. Terms of each contract are as follows: Contract1Contract2Contract3$2,500,000$2,500,000$6,500,000$2,500,000$3,000,000$1,000,000$2,500,000$4,500,000$1,000,000$2,500,000$5,000,000$1,000,000 As his adviser, which contract would you
10. Problem 5.20 (PV of a Cash Flowstream) each year. Terms of each contract are as follows: Contract1Contract2Contract3$2,500,000$2,500,000$6,500,000$2,500,000$3,000,000$1,000,000$2,500,000$4,500,000$1,000,000$2,500,000$5,000,000$1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. a. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. b. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. e. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. d. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. e. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2
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