Mark Harris, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Mark and his agent came up with a counteroffer.

Year		Current Contract		Team's Offer		Counteroffer
1		$8,403,000		$4,117,470		$5,461,950
2		$3,131,000		$3,287,550		$6,481,170
3		$2,513,000		$3,568,460		$3,367,420
4		$1,831,000		$3,936,650		$2,819,740

A. What is the present values of Current Contract using a 14 percent discount rate?

B. What is the present values of Team's Offer using a 14 percent discount rate?

C. What is the present values of Counteroffer using a 14 percent discount rate?

D. Which of the three contacts has the highest present value?