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What is the pv of the quarterback contract

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Reference no: EM133039568

Question - A famous quarterback just signed a $10.8 million contract providing $2.7 million a year for 4 years. A less famous receiver signed a $7.0 million 4-year contract providing $3 million now and $2.2 million a year for 4 years. The interest rate is 8%.

Required -

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

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

Reference no: EM133039568

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