PV OF CASH FLOW 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 guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Contract 1 $2,500,000 $2,500,000 $2,500,000 s2,500,000 Contract 2 $2,500,000 $3,000,000 $4,500,000 $5,500,000 Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. O Contradt 3 gives the quarterback the highest present value, therofore, he should accept Contract 3 Ob. Contract 2 gives the quarterback the highest present value, therefore, he should accept Contract 2 c Contrect 1 gives the qurterback the highest present value, therefore, he should accept Contract 1 gives the urterback the highest future value, therefore, he should accept Contract1 3 gives the quarterback the highest future velue; therefore, he should accest Contract 3 s O s Contract 1 gives the the O Contrect