Present Value Suppose two athletes sign 10-year contracts for $80 million. In one case, we are told that the $80 million will be paid in 10 equal installments. In the other case, we are told that the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?

How do we find the present value for each case? I saw it was 49.16 million for the first deal but I don't understand why.