What is the pv of the receiver contract

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Question: A famous quarterback just signed a $15.2 million contract providing $3.4 million a year for 4 years. A less famous receiver signed a $14.2 million 4-year contract providing $3 million now and $2.8 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? Receiver Quarterback

Reference no: EM131972937

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