Question: Answer both please Determine NPV for Professional Athlete's Compensation. It's widely reported that last year's star player signed a three-year $10 million contract. Suppose you

Answer both please Answer both please Determine NPV for Professional Athlete's Compensation. It's widely reported

Determine NPV for Professional Athlete's Compensation. It's widely reported that last year's star player signed a three-year $10 million contract. Suppose you are a financial analyst at a sports management company that has this athlete as a client. The Treasurer asked you to value this client's compensation at a discount rate of 8%. You determine that the contract provides )1) an immediate cash bonus of $2 million, (2) followed by $2.5 million in salary at the end of each year for the next two years, (3) followed by $3 million at the end of the third year. You quickly compute NPV for this uneven series of cash flows by using 8% and tell the Treasure the value is select closest answer): O close to $10 million not enough information to determine O close to 12 million O close to 7 million at $6,839,658.59 O close to 9 million at $8,839,658.59 Question 2 1 pts Calculate NPV for compensation of CFO. The media has been highlighting the hiring of a turn-around expert at a nearly-bankrupt conglomerate. The Board of Directors offered a choice of four-year contracts. The CFO's preferred choice is payments at the end of the year as follows: Year 1 is $1 million; Year 2 is $1.5 million; Year 3 is $2 million; Year 4 is $2.5 million. Suppose you are a financial analyst asked to value the contract at a discount rate of 12%. You quickly calculate NPV for this series of uneven cash flows and report the contract is worth: O none of the answer choices is correct O $5 million or $5,000,500.63 O $5.5 million or $500,000.65 O $7 million or $7,150,000 O $5.1 million or $5,101,003.65

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