Calculate the present value of each offer to help your client determine which proposal offers the most overall cash over the life of the deal. Each contract is for 5 years and there is an 8% discount rate.

Offer 1:

Signing bonus of $3M

Starting salary of $3M in year 1, with annual 20% raises

Offer 2:

No signing bonus

Salaries as follows:

Year 1: $2M

Year 2: $3M

Year 3: $6M

Year 4: $7M

Year 5: $9M

Offer 3:

Signing bonus of $3M

Annual salary of $5M

Offer 4:

Signing bonus of $12M

Annual salary of $2.5M

Offer 5:

Signing bonus of $2M

Annual salary of $3M

Deferred payment of $25M, paid 10 years after contract ends (15 years from now)