A rookie quarterback is negotiating his first NFL contract. He has been offered two possible 4-year contracts and his opportunity cost is 10% annually (Assume annual compounding). Payments are guaranteed and they would be made at the end of each year. Terms of each contract as follows:

Year Contract 1 Contract 2 Investment Deposits

1 $2,000,000 $7,000,000 $200,000

2 $3,000,000 $3,000,000 $300,000

3 $4,000,000 $2,000,000 $400,000

4 $5,000,000 $1,000,000 $500,000

A) As his financial agent, compute the present value of each contract and recommend which contract he should accept.

B) Assume today he has zero in his Investment account. He makes investment deposits according to the schedule above for the next four years. What is the future value of his Investment account at the end of year 4, assuming the interest rate is 10% annually?