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A famous quarterback just signed a contract for $15.2 million, providing $3.4 million a year for 4 years. A less famous receiver signed a contract for $14.2 million, providing $3 million now and $2.8 million a year for 4 years. The interest rate is 8%.
a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
c. Who is better paid?
A shareholder who has rights
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