A rockie quartertack is negotiating his first NFL contract. His opportunity cost is B\%. He has beeh offered three possible 4 y year contracts, Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Contract 1$2,500,000$2,500,000$2,500,000$2,500,000 Contract 2 \$2,500,000 $3,000,00054,500,000$5,000,000 Contract 356,500,00051,500,000$1,500,000$1,500,000 As his adviser, which contract would you tecommend that he accept? 5eiect the correct answer: 1. Contract 3 qives the quarterback the highest present valuez therefore, he should accept Contract 3. 3. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. cr. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. 1. Contract 3 gives the quarterback the highest future value; therefore, he should ackeat Contract 3. A. Contract 1 gives the quarterback the highest future value, therefore, he should accept Contract 1. ind the future values of the following ordinary annuities: a. FV of 5800 paid each. 6 months for 5 years at a nominal rote of 8% compounded semiannually . Do not round intermediate calculations. Aound your answer to the nearest cent. b. FV of $400 paid each 3 months for 5 years at a nominal rate of 89 compounded quarteriy. Do not round intermediate calculations. flound your answer to the nearest cent 5 c. These annuties receive the same amount of cash during the 5-year periad and earn interest at the same nominal rate, yee the annuity in part b ends up larper than the one in part a. Why does this occur