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3a. Suppose two athletes sign 10 year contracts for $80 million. In one caso, wore told that the 580 million will be paid in 10

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3a. Suppose two athletes sign 10 year contracts for $80 million. In one caso, wore told that the 580 million will be paid in 10 equal installments. In the other case, were told that the 580 milicn will be paid in 10 installments, but the instalinerts will incroase by 5% per year, Who got the better deal? Why? 36. You have two options: From option A, you will recelve $200 for eight quarters starting trom the end of the first quariar. From option B, you will receive 5195 for eight quarters starting from the beginning of the first quarter. If the interest rate is 4% compounded quarterly, which one has a higher present value soday? 3e. You have two cotons: From ootion C, you will receive a perpetuity of $300 every quartor starting from the end of the first year. From option D. you will receive $3,200 for three quarters starting from the end of the first quarter. If the interest rate is 10% compounded quarterly, which one has a higher present value today

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