# PV of the quarterback

A famous receiver just signed a $10.4 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $9.4 million 4-year contract providing $3 million now and $1.6 million a year for 4 years. The interest rate is 8%.

a. Calculate the PV of the quarterback. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value= _______________ million

b. Calculate the PV of the receiver. (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

https://brainmass.com/business/annuity/pv-quarterback-457408

#### Solution Preview

A famous receiver just signed a $10.4 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $9.4 million 4-year contract providing $3 million now and $1.6 million a year for 4 years. The interest rate is ...

#### Solution Summary

The solution discusses PV of the quarterback. PV of the receivers are given.