Assume you are a professional athlete. You have been offered the following contract: Bonus today = $2,000,000 Annual salary (one payment at the end of the year) = $250,000 for 25 years. What is the present value of the contract if you use a 10% discount rate?

What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $10,000 today on graduate school when you earn $40,000/year today and will earn $42,000/year for the next 35 years after grad school. Assuming you could invest this money elsewhere and earn 10%?

Can you please explain how to solve these 2 questions using the HP 10bII+ or any financial calculator.