8. You have just struck oil in the middle of your hay field. An oil company has offered to pay you a perpetual annuity of $12,500 per year for the rights. What is the value of the offer, assuming a 10% discount rate? The value with the discount rate would be $125,000. 9. What would be the value of the annuity in question 8 if the company increased the payment by 3% each year? 11. Sam Crosby is a professional hockey player who is considering two contract offers. Contract A will pay him $6 million at the end of each of the next seven years. Contract B will pay him $5 million for the first three years and $7 million for the last four years. What is each contract's present value using an annual interest rate of 7%? Which contract is better