13) Carter "Flip" Allison recently rejected an $8,000,000, five year contract with the Vancouver Seals. The contract offer called for an immediate signing bonus of $3,000,000 and annual payments of $1,000,000. To "sweeten" the deal, the president of player personnel for the Seals has now offereda $10,000,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 balloon payment S 4.000,000 $1,000,000 S 1,100,000 S 1,200,000 1,300,000 $ 1,400,000 Total Suppose you are Allison's agent and you wish to evaluate the two contracts using a required rate of return of 9 percent. In present value terms, how much better is the second contract