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how can i put in the financial calculator
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PV OF CASH FLOW STREAM
A rookie quarterback is negotiating his first NFL contract. Hisopportunity cost is 6%. He has been offered three possible 4-yearcontracts. Payments are guaranteed, and they would be made at theend of each year. Terms of each contract are as follows:
1 2 3 4
Contract 1 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Contract 2 $2,500,000 $3,500,000 $4,500,000 $5,000,000
Contract 3 $7,000,000 $1,500,000 $1,500,000 $1,500,000
As his adviser, which contract would you recommend that heaccept?
Select the correct answer.
a. Contract 1 gives the quarterback the highest present value;therefore, he should accept Contract 1.
b. Contract 2 gives the quarterback the highest present value;therefore, he should accept Contract 2.
c. Contract 1 gives the quarterback the highest future value;therefore, he should accept Contract 1.
d. Contract 3 gives the quarterback the highest future value;therefore, he should accept Contract 3.
e. Contract 3 gives the quarterback the highest present value;therefore, he should accept Contract 3.

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4.2 Ratings (875 Votes)

Contract 1 Net present value is solved using a financial calculator The steps to solve on the financial calculator Press the CF button CF0 0 Cash flow for all the years should be entered Press Enter and down arrow after inputting each cash flow After entering the last cash flow press the NPV button and enter the See Answer

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how can i put in the financial calculatorCheck My Work (1 remaining)Click here to read the eBook: Uneven Cash FlowsPV OF CASH FLOW STREAMA rookie quarterback is negotiating his first NFL contract. Hisopportunity cost is 6%. He has been offered three possible 4-yearcontracts. Payments are guaranteed, and they would be made at theend of each year. Terms of each contract are as follows:1234Contract 1$2,500,000$2,500,000$2,500,000$2,500,000Contract 2$2,500,000$3,500,000$4,500,000$5,000,000Contract 3$7,000,000$1,500,000$1,500,000$1,500,000As his adviser, which contract would you recommend that heaccept?Select the correct answer.a. Contract 1 gives the quarterback the highest present value;therefore, he should accept Contract 1.b. Contract 2 gives the quarterback the highest present value;therefore, he should accept Contract 2.c. Contract 1 gives the quarterback the highest future value;therefore, he should accept Contract 1.d. Contract 3 gives the quarterback the highest future value;therefore, he should accept Contract 3.e. Contract 3 gives the quarterback the highest present value;therefore, he should accept Contract 3.

Contract 1	$2,500,000	$2,500,000	$2,500,000	$2,500,000
Contract 2	$2,500,000	$3,500,000	$4,500,000	$5,000,000
Contract 3	$7,000,000	$1,500,000	$1,500,000	$1,500,000