Find what is the value of each choice

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Question: A sports star can sign a 6-year contract that starts at $1.2M with increases of $0.3M each year for his expected playing career of 6 years. It is also possible to sign a contract that starts at $0.8M for the first year and then increases at $0.2M each year for 10 years (note some income is deferred until after he retires). If his interest rate for the time value of money is 8%, what is the value of each choice?

Reference no: EM132157911

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