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Which contract would you recommend that accept

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Sarfaraz Ahmed is negotiating sports employment contract. His opportunity cost is 12%. He has been offered three possible 4-year contracts. Payments are in Pakistani rupees and are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:

Contract Year 1 Year 2 Year 3 Year 4

Contract 13 Million 3 Million 3 Million 3 Million

Contract 22 Million 3 Million 4 Million 5 Million

Contract 3 7 Million 1 Million 1 Million 1 Million

Question 1: As his financial adviser, which contract would you recommend that he accept?

Reference no: EM132634820

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