Jared Goff , the number 1 draft pick of the NFL Los Angeles Rams in 2016, and his agent are evaluating three contract options. Each option offers a signing bonus and a series of payments over the life of the contract. Goff uses a 10.25 percent rate of return to evaluate the contracts. Given the cash flows for each option, which one should he choose?

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Year Cash Flow Type Option A Option B Option C Signing Bonus 1 $3,100,000 $4,000,000 $4,250,000 Annual Salary $ 650,000 $ 715,000 $ 822,250 $ 975,000 $ 825,000 $ 550,000 $ 625,000 $ 925,000 $ 800,000 $ 900,000 Annual Salary 3 Annual Salary Annual Salary 4 $1,250,000 Annual Salary 6. Annual Salary $1,100,000 $1,000,000 $1,250,000 6.