Pv of a cash flow stream a rookie quarterback is negotiating his
PV of a cash flow stream a rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%, he has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are listed below:
Contract 1 3,000,000 3,000,000 3,000,000 3,000,000
Contract 2 2,000,000 3,000,000 4,000,000 5,000,000
Contract 3 7,000,000 1,000,000 1,000,000 1,000,000
As his advisor, which would you recommend that he accept?
