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What is the total value of Contract offer 3? Offer 3 - $1,006,094 immediate signing bonus - $500,000 at the end of Year 1 -
What is the total value of Contract offer 3?
Offer 3 - \$1,006,094 immediate signing bonus - $500,000 at the end of Year 1 - $1,000,000 at the end of Year 2 - $1,500,000 at the end of Year 3 - \$2,500,000 at the end of Year 4 - $180,470 bonus for any year Luke is selected to play in the Pro Bowl All Star game (25\% probability in each year) Offer 3 - \$1,006,094 immediate signing bonus - $500,000 at the end of Year 1 - $1,000,000 at the end of Year 2 - $1,500,000 at the end of Year 3 - \$2,500,000 at the end of Year 4 - $180,470 bonus for any year Luke is selected to play in the Pro Bowl All Star game (25\% probability in each year) Step by Step Solution
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