s Chapter Problem 5.20 (PV * Cash Row Stream), Section Problem 5.20 (PV of a Cash Flow Stream), Problem Problem 5.20 (PV of a Cash Flow Stream) e me ka negotiating his first contract. His opportunity cost 6. He has been offered three possible year contracts. Payments are guaranteed, and they will be made at the end of each year terms of each contract are as follows: Contract $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 12.000.000 $3,000,000 $4,300,000 $5,000,000 Contract 3.500.000 $1.500,000 $1,500,000 $1,500,000 Accould you recommend that he co? Select the correct a. Contract 3 gives the quarterback the highest future value therefore, he should accept Contract b. Contract 3 gives the quarterback the highest present value therefore, he should accept Contract 3. c Contract 1 gives the quarterback the highest present values therefore, he should accept Contract 1. d. 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 Contract 2