Explore BrainMass

Explore BrainMass

    A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. Who is better paid? The interest rate is 10 percent

    Solution Preview

    Calculate the present value of two contracts. The contract with higher present value is better ...

    Solution Summary

    Step by step computations show you how to do this.

    $2.19

    ADVERTISEMENT