9. Problem 5.18 (Uneven Cash Flow Stream) a. Find the present valiane of the following...

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9. Problem 5.18 (Uneven Cash Flow Stream) a. Find the present valiane of the following cash flow streams at a 4% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. Stream A Stream B Stream A: 1 Stream B: 1 b. What are the FNs of the streams at a 0\% discount rate? Round your answers to the nearest doltar. Stream A: 5 : Stream B: 5 A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 8%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each yeac. Terms of each contract are as follows: 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$5,500,000 Contract 3$56,000,000$1,500,000$1,500,000$1,500,000 As his advises, which contract would you recommend that he accept? Select the correct answef. 3. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. 3. Contract 1 gives the quarterback the highest future value, therefore, he should accept Contract 1 . c. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. d. Contract 2 gives the quarterback the highest present values therefore, he should accept Contract 2. 6. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3

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