A famous quarterback just signed a $12.6 million contract providing $2.1 million a year for 6 years. A less famous receiver signed a $11.6 million 6-year contract providing $5 million now and $1.1 million a year for 6 years. The interest rate is 9%.
a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
Present value $ million
b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
Present value $ million
C. Who is better paid?
Receiver
Quarterback