(a)A Kenya top basketballer is negotiating a contract with Lions Basketball Club. His opportunity cost is 12%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the start of each year. Terms of each contract are as follows:

Contract

Year

1

2

3

4

X

Sh.850,000

Sh.850,000

Sh.850,000

Sh.850,000

Y

Sh.750,000

Sh.850,000

Sh.900,000

Sh.950,000

Z

Sh.1,050,000

Sh.700,000

Sh.720,000

Sh.680,000

As his manager, which contract would you recommend that he accept and why?