A famous quarterback just signed a 126 million contract, Ask an Expert

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A famous quarterback just signed a $12.6 million contract providing $2.1 million a year for 6 years. A less famous receiver signed a $11.6 million 6-year contract providing $5 million now and $1.1 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?

Receiver

Quarterback

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92410437

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