Calculate NPV for Pro Athlete. Sports News has been highlighting a rookie quarterback signing his first contract. The General Manager offered a choice of four-year contracts. One choice is payments at the end of the year as follows: Year 1 is $1 million; Year 2 is $1.5 million; Year 3 is $2 million; Year 4 is $2.5 million. Suppose you are a financial analyst asked to value the contract at a discount rate of 12%. You quickly calculate NPV and report the contract is worth: