What is the pv of the quarterback contract

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A famous quarterback just signed a $10.5 million contract providing $2.1 million a year for 5 years. A less famous receiver signed a $10.0 million 5-year contract providing $4 million now and $1.2 million a year for 5 years. The interest rate is 10%.

Problem 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.)

Problem 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.)

Reference no: EM132906638

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