What is the present value of the receivers contract

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Reference no: EM131067472

A famous quarterback just signed a $16.2 million contract providing $2.7 million a year for 6 years. A less famous receiver signed a $15.2 million 6-year contract providing $5 million now and $1.7 million a year for 6 years. The interest rate is 9%. 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: EM131067472

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