The David Kick is looking to play for a U.S. MLs team. D.C. United is offering him $50 million for his first year The Chicago Fire is offering him $25 million his first year and $10 million per year for the following three years the market interest rate is 5 percent. Which is the better deal in terms of present value in millions? A. D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire B. DC. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire C Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United D. Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United The U.S. Federal government is unlikely to default on its bonds because: A. The bonds are all long term bonds and they are insured B. The Federal government has the power to collect taxes and to sell securities to the Fed C Foreigners are willing to buy the Federal government bonds and l to the U.S. government D. The Federal government can always borrow from the states and from business firms Steve bought a house for $250,000 and plans to rent it out for $2,000 per month. His expected annual rate return from renting the house is approximately: A. 8.0 percent B. 9.6 percent C. 19.2 percent D. 20 percent