What is the total value contract of offer $3?$

Gra Bill* Help Score Close Graw Hill Education The Time Value of Money probability that Luke will play. $164,395 * 3.170 * 0.25 = $130,283 What is the total value of Contract offer #3? Luke $5,639,487 Incorrect, try again. Hint: by this point you know all of the components and simply need to put them together. Continue O Return to Activity Contract Offers Offer 1 PV Annuity Materials $914,395 immediate signing bonus $850,000 at the end of each year for the next 5 years Offer 2 $207,198 immediate signing bonus $100,000 at the end of Years 1 through 4 $150,000 at the end of Years 5 through 10 $1,000,000 and the end of Years 11 through 40 Offer 3 $1,002,879 immediate signing bonus e $500,000 at the end of Year 1 e at the end of Year 2 e at the end of Year 3 e at the end of Year 4 $164,395 bonus for any year Luke is selected to play in the Pro Bowl All Star game (25% probability in each year) Canadian Football League $1,114,395 immediate signing bonus $2,000,000 at the end of Years 1 through 3 Only signing bonus is guaranteed (80% probability of being on team each year)