Explain the market interest rate is five percent

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Reference no: EM1360433

David Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following three years. The market interest rate is 5 percent. Which is the better deal in terms of present value in millions?

Reference no: EM1360433

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