Question
Tom Brady is ready to sign his contract with the tampa bay buccaneers. The team gave him 3 options, and he asked you to help
Tom Brady is ready to sign his contract with the tampa bay buccaneers. The team gave him 3 options, and he asked you to help him make the best decision. He knows that all payments will be made at the beginning of each season.
contract A
the contract pays $30,000,000 per year for 10 years.
contract B
the contract pays $20,000,000 for the first 3 years. after it pays 40,000,000 for the following 5 years. for the last three years it pays $70,000,000.
contract C
the contract pays $75,000,000 for the first 2 years. after it pays $20,000,000 for 5 years. for the last 3 years the contracts pays 10,000,000.
you know the market interest rate is 8%
what would you advise tom brady?
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