I have a finance question for you:

You received a $$700$ million contract for the next $10$ years. You will be paid $$2$ million per year for the next $10$ years STARTING $1$ YEAR FROM TODAY and will then receive $$68$ million per next for the next $10$ years. So that is $10$ total payments of $$2$ million and $10$ total payment os $$68$ million.

$1.$ If the discount rate is $5\%,$ what is the present value of earnings?

$2.$ You are given an alternate deal to sign for $$36$ million per year for the next $12$ years, STARTING $1$ YEAR FROM TODAY. If the discount rate is $5\%,$ what is the present value of earnings?

$3.$ As the discount rate increases, what happens to the difference in present value between the two contracts?

a$.$ Both contracts have a lower present value but the effect on contract #$1$ is larger so the differece in present values shrinks

b$.$ Both contracts become more valuable as the discount rate increases, but the value of contract #$1$ goes up faster than the value of contract #$2$

c$.$ The difference in present value is roughly constant as the rate goes up