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(6) You are a good friend to Jen Sepahta. He is asking you about the TV Shows contract offered to him for the coming season.
(6) You are a good friend to Jen Sepahta. He is asking you about the TV Shows contract offered to him for the coming season. There are two offers; offer A is a RM5,000,000 contract, which is RM1,000,000 a year for 5 years, and (ii) offer B is a RM5,500,000 contract, which is RM500,000 a year for four years and RM3,500,000 in year 5. Assume that current interest rate is at 8%. Based on considerations of money only, what is your advice? Offer A: Offer B: Decision: (5 marks]
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