Present value of contract the same as your original offer

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As the manager of a professional football team, you just offered the kicker a two-year contract that pays $2 million per year. The kicker refuses the contract, stating he wants $3 million this year. If you offer $3 million this year, about how much will you have to offer next year to keep the present value of the contract the same as your original offer? Assume a 10% annual interest rate.

Reference no: EM131096691

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