Question: Player X signs a contract making $ 2 , 0 0 0 , 0 0 0 at the end of Years 1 through 3 .

Player X signs a contract making $2,000,000 at the end of Years 1 through 3. The discount rate is 10%. There is an immediate signing bonus of $1,147,330. Only signing bonus is guaranteed (80% probability of being on team each year).
What is the NPV of the contract?

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