Question: A creative general manager has offered two different contracts to a vain quarterback. The contracts are shown below CONTACT CONTRACT YEAR SALARY 0 $501,800.00 1

 A creative general manager has offered two different contracts to a

A creative general manager has offered two different contracts to a vain quarterback. The contracts are shown below CONTACT CONTRACT YEAR SALARY 0 $501,800.00 1 $501,800.00 2 $501,800.00 3 $501,800.00 4 $501,800.00 SALARY 0 $302,050.00 1 $302,050.00 2 $812,050.00 3 $812,050.00 4 $812,050.00 YEAR The newspapers report the total dollars of the contract, so contract A will pay a total of $2,509,000.00, while contract B will pay $3,040,250.00. The player will select contract B as it has more publicity. The team can earn 7.00% on their investments, so let's determine the value of each contract Which contract would the team prefer to sign with the player? (A or B)

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