Novak Hardy recently rejected a $23,600,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $8,850,000 and annual payments of $2,950,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $25,770,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 $2,950,000 Year 2 3,030,000 Year 3 3,110,000 Year 4 3,190,000 Year 5 3,460,000 Year 5 balloon payment 10,030,000 Total $25,770,000 Click here to view factor tables Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answers to O decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value of old contract Present value of new contract In present value terms, the second contract is than the old one