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A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed,
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? Select the correct answer. a. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. b. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. c. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. d. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. e. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3
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