Attempts: Keep the Highest: 1 8. Problem 5.20 5-12: Uneven Cash Flows PV of cash flow stream A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are listed below Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 $2,000,000 $3,500,000 $4,000,000 $5,000,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. O contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1 contract 2 gives the quarterback the highest present value; therefore, he should accept Contoct 2. Contract 3 glves the quarterback the highest future value; therefore, he should accept Contract 3 OContract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1 Grade It Now Save & Continue