Salah Bin Ziad, a leading hockey league player, is negotiating his club contract. He

has three possible 5-year contracts to choose from and his opportunity cost is 4%. All

contracts guarantee payments to be made at the end of each year. Below are the

details regarding each contract:

Contracts 1 2 3 4 5

X $1,500,000 $2,500,000 $3,500,000 $4,500,000 $5,500,000

Y $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000

Z $9,000,000 $5,000,000 $4,000,000 $4,000,000 $4,000,000

As his manager, which contract would you recommend him to accept?