1) A football player has the following new contracts options. All are guaranteed. If the discount rate...

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Finance

1)
A football player has the following new contractsoptions. All are guaranteed. If the discount rate is 7% how much iseach worth today? Which do you think is the best option?Why?
A yearly contract for $10 million per year for each of the next4 years.
A yearly contract for $5 million per year for each of the next8 years.
A yearly contract which pays $5 million the first year, $10million the second year, $20 million the third year, and $15million the fourth year.
A back-loaded contract of $45 million paid at the end of 4years.
A back-loaded contract of $55 million paid at the end of 8years.
A front-loaded contract of $35 million paid today.

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1)A football player has the following new contractsoptions. All are guaranteed. If the discount rate is 7% how much iseach worth today? Which do you think is the best option?Why?A yearly contract for $10 million per year for each of the next4 years.A yearly contract for $5 million per year for each of the next8 years.A yearly contract which pays $5 million the first year, $10million the second year, $20 million the third year, and $15million the fourth year.A back-loaded contract of $45 million paid at the end of 4years.A back-loaded contract of $55 million paid at the end of 8years.A front-loaded contract of $35 million paid today.