ames Hardy recently rejected a $20,425,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $7,515,000 and annual payments of $2,582,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $21,872,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 $2,485,000 Year 2 2,565,000 Year 3 2,661,000 Year 4 2,797,000 Year 5 2,899,000 Year 5 balloon payment 8,465,000 Total $21,872,000 Suppose you are Hardys agent and you wish to evaluate the two contracts using a required rate of return of 12 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 125.) Present value of old contract Present value of new contract In present value terms, the second contract is than the old one.