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Freds club has offored him two means of restructuring his contract. Option 1 is $6M pald in full in 3 years. Opkion 2 is $2.75M

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Freds club has offored him two means of restructuring his contract. Option 1 is $6M pald in full in 3 years. Opkion 2 is $2.75M per year for each of the next three yeart. The dicount rate is 6% What is the real value of Option 1 ? What is the real value of Option 2? Which contract ahould Fred accept

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