What is the pv of the quarterback contract

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Reference no: EM131995004

A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. The interest rate is 10%.

a) What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answers in millions rounded to two decimal places.)

b) What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answers in millions rounded to two decimal places.)

Reference no: EM131995004

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