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Suppose that two athletes sign 10-year contracts for 80

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Suppose that two athletes sign 10-year contracts for $80 million. In one case, we are told that the $80 million will be paid in 10 equal installments. In the other case, we are told that the $80 million will be paid in 10 installments, but the installments will increase by 5% per year. Who got the better deal?

Reference no: EM13598829

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