5-6.34

Problem 6.34 (Part Level Submission) Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counteroffer. Current Contract Team's offer counter offer Year $4,989,400 $7,676,000 $3,761,240 $3,143,000 $3,300,150 $6,506,010 $3,362,060 $2,509,000 $3,562,780 $1,836,000 $3,947,400 $2,827,440 (a) What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25) Present value