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A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 9%. 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 9%. 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: Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 $2,500,000 $3,000,000 $4,000,000 $5,500,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer .Contract 2 gives the quarterback the highest present value therefore, he should accept Contract 2 b. Contract 1 gives the quarterback the highest future value: therefore, he should accept Contract i. c.Contract 3 gives the quarterback the highest present value: therefore, he should accept Contract 3 d. Contract 3 givs tha quarterback the highest futura value: tharaforo, ha should accopt Contract 3. e. Contract 1 gives the quarterback the highest present value therefore, he should accept Contract 1
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