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PV of a Cash Flows Stream: A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three
PV of a Cash Flows Stream: A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:
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Contract 1: $3,000,000$3,000,000 $3,000,000$3,000,000
Contract 2: $2,000,000$3,000,000$4,500,000$5,500,000
Contract 3: $7,000,000$1,000,000 $1,000,000$1,000,000
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