What is the present value of contract A? What is the present value of contract B?

A creative general manager has offered two different contracts to a vain quarterback. The contracts are shown below: CONTACT A YEAR SALARY 0 $505,500.00 1 $505,500.00 2 $505,500.00 3 $505,500.00 4 $505,500.00 CONTRACT B YEAR SALARY 0 $302,100.00 1 $302,100.00 2 $811,500.00 3 $811,500.00 4 $811,500.00 The newspapers report the total dollars of the contract, so contract A will pay a total of $2,527,500.00, while contract B will pay $3,038,700.00. The player will select contract B as it has more publicity. The team can earn 5.00% on their investments, so let's determine the value of each contract