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
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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