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Pv of a cash flows stream

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Show the inputs to solve for the PV of each contract; identify which contract you recommend the rookie accept?

PV of a Cash Flows Stream: A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:

1 2 3 4

Contract 1: $3,000,000 $3,000,000 $3,000,000 $3,000,000

Contract 2: $2,000,000 $3,000,000 $4,500,000 $5,500,000

Contract 3: $7,000,000 $1,000,000 $1,000,000 $1,000,000

Reference no: EM132370354

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