Q No. 1 Sarfaraz Ahmed is negotiating sports employment contract. His opportunity cost is 12%. He has been offered three possible 4-year contracts. Payments are in Pakistani rupees and are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:

Contract Year 1 Year 2 Year 3 Year 4 Contract 1 3 Million 3 Million 3 Million 3 Million Contract 2 2 Million 3 Million 4 Million 5 Million Contract 3 7 Million 1 Million 1 Million 1 MillionTime Expansion Zone North Cashflows (amount in Rs.) Expansion Zone East 0 Cashflows (amount in Rs.) 10,000 10,000 6,500 3,500 3.000 3,500 3 3.000 3,500 4 1.000 3.500