A rookie quarterback is negotiating his first NFL contract. His opportunity cost is He has been offered three possible year contracts . Payments are guaranteed, and they would be made at the end of each year Terms of each contractare follows

Vuure mework 24. Problem 5.20 (PV of a Cash Flowstream) 2 eBook A A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. 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: 1 3 a Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 $2,500,000 $3,500,000 $4,000,000 $5,000,000 Contract 3 $6,000,000 $1,500,000 $1,500,000 $1,500,000 As his adviser, which contract would you recommend that he accept? . B Select the correct answer. a. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. b. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. CC. 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. Grade it Now Save & Continue Continue without saving