Question: Current Attempt in Progress James Smith, the number 1 draft pick of the NFL Los Angeles Rams in 2016, and his agent are evaluating three

Current Attempt in Progress James Smith, the number 1 draft pick of the NFL Los Angeles Rams in 2016, and his agent are evaluating three contract options. Each option offers a signing bonus and a series of payments over the life of the contract. Smith uses a 8.25 percent rate of return to evaluate the contracts. Given the cash flows for each option below, find the present value of each alternative. Year Cash Flow Type Option A Option B Option C 0 Signing Bonus $3,100,000 $4,000,000 $4,250,000 1 Annual Salary $650,000 $825,000 $550,000 2 Annual Salary $715,000 $850,000 $625,000 3 Annual Salary $822,250 $925,000 $800,000 4 Annual Salary $975,000 $1,250,000 $900,000 5 Annual Salary $1,100,000 $1,000,000 6 Annual Salary $1,250,000 (Do not round intermediate calculations and round your final answers to the nearest dollar.) Find the present value of each alternatives: Present value of Option A $ Present value of Option B $ Present value of Option C $

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