X ww NWP Assessment Player UI Appl x + er/index.html?launchld=5bcb7963-6e24-4067-b09e-fd4976e9ef25#/question/6 Question 7 of 10 Current Attempt in Progress Carla Hardy recently rejected a $21,600,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $8, 100,000 and annual payments of $2.700,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $23,620,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 $2,700,000 Year 2 2,780,000 Year 3 2,860,000 Year 4 2,940,000 Year 5 3,160,000 Year 5 balloon payment 9,180,000 Total $23,620,000 Click here to view factor tables Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answers to O decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value of old contract Present value of new contract In present value terms, the second contract is not better |than the old one. 9) 04550