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E. Maybe zero...lnce the Lendpe nn 6. To reduce her estate taxes your rich Aunt Gladys, will pay you $10,000 per year for four years

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E. Maybe zero...lnce the Lendpe nn 6. To reduce her estate taxes your rich Aunt Gladys, will pay you $10,000 per year for four years starting one year from now. Assuming you could invest that same amount of money, with similar risks in an investment with a return of 8% what is the present value of your aunt's gift? A. $40,000.00 B. $47,550.65 C. $36,852.11 D. $33,121.27 Cam Newton recently negotiated a new-five- year contract that guarantees a first year signing bonus of $15Million followed by $6M per year for four years. One of his receivers negotiated a slightly different contract that allows $8M per year for five years with no signing bonus. Assuming a discount rate of 10%, which player got the better deal? what was the NPV of that better deal? A. QB-$38,764,749 B. QB-$33,764,749 C. wR-$33,698,910 D. WR-$35,698,910 7

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