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A famous quarterback just signed a $25 MM contract providing $5 MM per year for 5 years. A less famous receiver signed a $20 MM,
A famous quarterback just signed a $25 MM contract providing $5 MM per year for 5 years. A less famous receiver signed a $20 MM, 5-year contract providing $14.0 MM now and $1,200,000 a year for 5 years. If interest rates are 9%, who is better paid on a PV basis and by how much? Show your work to get credit.
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