Question
Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments.
Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments. In the other case, we're told that the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal and why? Please explain in detail why you feel the athlete you chose received the better deal. I understand that the equal installments is the better deal but i want a clear understanding of why its the better deal. with a break down to understand what makes it a better deal.
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