5. Problem 5.20 (PV of a Cash Flowstream) book A rookie quarterback is negotiating his first NFL, contract. His opportunity costs. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 1 2 Contract 1 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Contract 2 $2,500,000 $3,500,000 $4,500,000 $5,000,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer Ca. Contract 1 gives the quarterback the highest future value therefore, he should accept Contract 1. Cb. Contract 3 gives the quarterback the highest future values therefore, he should accept Contract 3. De Contract 1 gives the quarterback the highest present value; therefore, he should accept Contracts d. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. De Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3