8. Lionel Messi has decided to move to Virginia and play for the Richmond Kickers in their new Seniors League. The Kickers have offered Mr. Messi 3 payment schemes to choose between. Each involves a signing bonus payable immediately and three years of salary payable at the end of each year. The first scheme calls for Messi to receive a signing bonus of $25 million and a salary of $3 million per year for 3 years. The second calls for him to receive a signing bonus of $12.5 million and an annual salary of $8 million per year. The third scheme calls for Messi to receive a signing bonus of $5 million and annual salaries of $8 million, $12 million, and $15 million. Messi has sought your advice on this choice of payment schemes. Advise him on which scheme to pick. Use an annual interest rate of 8% to evaluate the alternatives.

9. You are in the last four years of an annual payment loan with a bank. Your payment schedule is as follows: Today	$0
End of Year 1	$5000
End of Year 2	$3000
End of Year 3	$2000
End of Year 4	$1000

A loan shark offers to refinance your loan. She will pay the remainder your loan in return for taking out the following loan with her: $800 a year in perpetuity. Assuming the interest rate on both loans is 8%, should you accept her offer?