Question: A first round draft choice quarterback has been signed to a 3 year, $25 million dollar contract. The details provided for an immediate cash bonus

A first round draft choice quarterback has been signed to a 3 year, $25 million dollar contract. The details provided for an immediate cash bonus of $2 million. The player is to receive a $5 million in salary at the end for the first year, $8 million the next, and $10 million at the end of the last year.

Assuming a 15 percent discount rate, is this package worth $25 million? If not, how much is it worth?

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