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 as shown in the table. Note that the salaries are paid at the end of EACH year. The interest rate is 10%. Based on this information, which one of the statements below is true?

Signing bonus (paid today) First-year salary Second-year salary Third-year salary Contract #1 (Boston) $1 million $2 million $ 4 million $5 million Contract #2 (Portland) $1 million $ 4 million $ 4 million $3 million Multiple Choice Curry is indifferent between the two contracts because they are both worth $12 million. Curry should take the Portland contract because it has a higher present value. 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 $10.9 million