11. Present Value of Annuities John Smith, an all-league professional football player, has just declared free agency. The Cleveland Browns and the Seattle Seahawks have made John the following offers: Cleveland Browns $1.0 million signing bonus payable immediately At the end of year 1 - $1.5 million At the end of year 2 - $2.5 million At the end of year 3 - $3.0 million At the end of year 4 - $3.75 milion Seattle Seahawks $1.5 million signing bonus payable immediately At the end of year 1 - $1.75 million At the end of year 2 - $2.25 million At the end of year 3 - $2.75 million At the end of year 4 - $3.50 million Assuming that John can invest his money and earn an 8% annual return, compounded quarterly, which is the better offer