Tom Hendy's Decision Tampa Bay just won the Super Bowl. Tom Brady is thinking about retiring. If he keep playing, he will be paid $4,000,000 each quarter for the next 2 years beginning May 16th. If he retires, he will not be paid out on his contract but, he will be able to write a "tell all book about his time in the NFL. The publisher is sure the book will sell well and has offered Brady 510,000,000 cash now as an advance on the book. In addition, to the advance payment, Brady will receive $20,000,000 in royalties on book sales as a one time payment in two years. 13. You advise Brady to Compare the present values of the two options b. Flip a coin to decide 6. Add up the total dollars in each eenario and choose the one that pays him more total dollars d. Choose to write the book and take the $10,000,000 cauh advance because you never know what is going to happen in the future 14. The payments for Brady playing contract, a are suitable for analysis as an annuity since the payments are equal in size and occur at regular interval b. Create a large EBITDA for the family c. Camot be analyzed because there is no present value given d. In total have a present value of $32,000,000 15. What is the present value of the future royalty payment if Brady writes the "tell all book? The appropriate sumul discount rate is 10%. compounded quarterly a. $20,000,000 b. $16,414.931 c. $16.528.926 d. 10,000,000