A basketball player has just signed a $30 million contract to play for three years. She will receive $5 million as an immediate cash bonus, $5 million at the end of the first year, $8 million at the end of the second year, and the remaining $12 million at the end of the contract. Assuming a discount rate of 10 percent, what is the value of the package? You can invest in a machine that costs $500,000. You can expect revenues net of any expense, except maintenance costs, of $150,000 at the end of each year for five years. You will subcontract the maintenance costs at a rate of $20,000 a year, to be paid at the beginning of each year. You expect to get $100,000 from selling the machine at the end of the fifth year. All these revenues and costs are after tax, as is the 10 percent cost of capital. Should you buy the machine