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What is the PV of the quarterback contract

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Question - A famous quarterback just signed a $12.8 million contract providing $3.2 million a year for 4 years. A less famous receiver signed a $8.6 million 4-year contract providing $3 million now and $2.5 million a year for 4 years. The interest rate is 9%.

a. What is the PV of the quarterback's contract?

b. What is the PV of the receiver's contract?

c. Who is better paid?

Reference no: EM133008213

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