2) A professional footy player and his agent are evaluating three contract options to play in the Australian Football League (AFL). Each option offers a signing bonus and a series of payments over the life of the contract. The player uses 7.25% rate of return (compounded annually) to evaluate the options. Year 0 1 2 3 Cash flow signing bonus Annual Salary Annual Salary Annual Salary Annual Salary Richmond Football Club $3,500,000 $700,000 $750,000 $800,000 $850,000 Hawthorn Football Club $3,500,000 $850,000 $800,000 $750,000 $700,000 Collingwood Football Club $3,500,000 $775,000 $775,000 $775,000 $775,000 4 () Using the information provided above, which contract should be chosen? (Show your calculations). [4 marks] Explain the phrase "a dollar today is worth more than a dollar tomorrow" (ii) [2 marks]