35.Martin Fillmore is a big basketball star who has been offered contracts by Boston Celtics

and Miami Heat. The payment (in millions of dollars) he receives under the 2 contracts are listed below:

YearBoston CelticsMiami Heat

0$18,000,000$12,500,000

114,000,00014,000,000

214,000,00014,000,000

314,000,00018,000,000

414,000,00018,000,000

Martin is committed to accepting the contract which provides him with the highest value (i.e., NPV). At what rate of return would Martin be indifferent between the teams?

1. 10.85%
2. 11.35%
3. 16.49%
4. 19.67%
5. 21.03%