What is the pv of the receiver contract

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A famous quarterback just signed a $14.0 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $13.0 million 4-year contract providing $3 million now and $2.5 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.)

Present value $  million  

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.)

Present value $  million  

c. Who is better paid?

Quarterback

Receiver

Reference no: EM131566340

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