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Evaluate Compensation of Pro Athlete. Sports News has been highlighting a rookie quarterback signing his first contract. The General Manager offered a choice of four-year

Evaluate Compensation of Pro Athlete. Sports News has been highlighting a rookie quarterback signing his first contract. The General Manager offered a choice of four-year contracts. The decision-making rule using NPV for valuation is:

Choose a negative NPV

Choose the highest NPV

Choose the NPV closest to zero.

Do not use NPV for compensation decisions

NPV is no longer used for any financial decision-making

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