Your answer is partially correct. Try again. Vaughn Hardy recently rejected a $19,655,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $7,405,000 and annual payments of $2,450,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $22,093,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of 5 years. Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 balloon payment Total $2,461,000 2,602,000 2,666,000 2,764,000 2,951,000 8,649,000 $22,093,000 Click here to view factor tables Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value of old contract 35272890 X Present value of new contract -35301328 In present value terms, the second contract is not better than the old one. Your answer is partially correct. Try again. Vaughn Hardy recently rejected a $19,655,000, five-year contract with the Vancouver Seals hockey team. The contract offer called for an immediate signing bonus of $7,405,000 and annual payments of $2,450,000. To sweeten the deal, the president of player personnel for the Seals has now offered a $22,093,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of 5 years. Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 balloon payment Total $2,461,000 2,602,000 2,666,000 2,764,000 2,951,000 8,649,000 $22,093,000 Click here to view factor tables Suppose you are Hardy's agent and you wish to evaluate the two contracts using a required rate of return of 15 percent. In present value terms, how much better is the second contract? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value of old contract 35272890 X Present value of new contract -35301328 In present value terms, the second contract is not better than the old one