A famous quarterback just signed a $10.4 million contract providing $2.6 million a year for 4...

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A famous quarterback just signed a $10.4 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $13.0 million 4-year contract providing $3 million now and $2.5 million a year for 4 years. The interest rate is 8%. a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present vakie million c. Who is better paid? million A famous quarterback just signed a $10.4 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $13.0 million 4-year contract providing $3 million now and $2.5 million a year for 4 years. The interest rate is 8%. a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present vakie million c. Who is better paid? million

Answer rating: 100% (QA)

We can use the present value formula to calculate the PV of each contract The formula ... View the full answer