A professional sports contract offers $100,000 paid now, $195,000 paid at the end of each of the second and third years, and $700,000 paid at the end of the fourth, fifth, and sixth years (Alternative 1). Alternatively, the contract could offer $390,000 per year paid at the end of each of the six years (Alternative 2). If money is worth 11.1%, which offer is preferable for the athlete? The preferred offer is