Question: A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed,

A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:

As his adviser, which contract would you recommend that heaccept?

3 2 + Contract 1 Contract 2 $3,000,000 $5,000,000 $1,000,000 $3,000,000 $2,000,000 $3,000,000 $3,000,000 $3,000,000 $4,000,000 Contract 3 $7,000,000 $1,000,000 $1,000,000

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Using your financial calculator enter the following data CF 0 0 CF 14 3000000 IYR 10 NPV Solve for NPV 950959634 Alternatively using your financial calculator enter the following data CF 0 0 CF 1 ... View full answer

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