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A famous quarterback just signed a $8.0 million contract providing $2.7 million a year for 4 years. A less famous receiver signed a $7.0 million
A famous quarterback just signed a $8.0 million contract providing $2.7 million a year for 4 years. A less famous receiver signed a $7.0 million 4-year contract providing $3 million now and $2.2 million a year for 4 years. The interest rate is 8%.
a. | What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) |
Present value | $ million |
b. | What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) |
Present value | $ million |
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