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Suppose that Stephen Curry, a basketball player for the Golden State Warriors, will become a free agent at the end of this NBA season. Suppose
Suppose that Stephen Curry, a basketball player for the Golden State Warriors, will become a free agent at the end of this NBA season. Suppose that Curry is considering two possible contracts from different teams. Note that the salaries are paid at the end of EACH year.
tableContract #BostonContract #PortlandSigning bonus paid today$ million,$ millionFirstyear salary,$ million,$ millionSecondyear salary,$ million,$ millionThirdyear salary,$ million,$ million
The interest rate is Based on this information, which of the following is true?
Curry is indifferent between the two contracts because they are both worth $ million.
Curry should take the Boston contract because it has a higher present value.
Curry is indifferent between the two contracts because they are both worth $ million.
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