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Fred's olub has oflered him two means of restructuring his contract. Option 1 is 50M paid in full in 3 years. Option 2 is $2.75M

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Fred's olub has oflered him two means of restructuring his contract. Option 1 is 50M paid in full in 3 years. Option 2 is $2.75M per.year for each of the neat three years. The dicount rate is 6%. What is the roal value of Option 1 ? What is the real value of Option 2 ? Which contract should Fred accept

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