Answer the following application questions. Be sure to show your work and explain your answers using full sentences and evidence where necessary.

9. Jenny received two endorsement offers - Under Armour offers $50,000 to be paid, in a single payment, in 5 years and Nike negotiated a long-term deal that called for yearly payments to Jenny of $8,500 for 3 years. The risk of default with the Under Armour is higher, so a discount rate of 9% is applied as opposed to the 5% rate used for Nike. Which is the better investment opportunity? Explain