Attempts Keep the Highest /6 3. Problem S.15 (Present Value of an Annuity) ebook Find the present values of these ordinary annutes. Discounting occurs once a year. Do not round Intermediate calculations. Round your answers to the nearest cent. a $700 per year for 14 years at 6%. 5 b. $350 per year for 7 years at 3% 5 3700 per year for 7 years at 0% 1 d. Rework previous parts assuming they are annuities due. Present value of $700 per year for 14 years at 6%:$ Present value of $350 per year for 7 years at 3% Present value of 5700 per year for 7 years at 0%:$ Grade it Now Save & Continue Ch OSPt1: End-of-Chapter Problems - Time Value of Money (CDN) Back to Assignment Attempts 0 Keep the Highest 0/1 4. Problem 5.20 (PV of a Cash Flowstream) eBook A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%, He has been offered three possible t-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 1 2 3 Contract 1 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Contract 2 $2,500,000 $3,000,000 $4,500,000 $5,500,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer a. Contract 2 gives the quarterback the highest present value therefore, he should accept Contract 2. b. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. c. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. d. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. e. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1