Today is January 1, 2017. Your friend Pat has just signed a contract to play for a professional football team. He will receive $2,500,000 for 2017, $3,500,000 for 2018, $3,700,000 for 2019, and $4,200,000 for 2020. All payments are made at the end of the year. Assume a 5% annual interest rate (EAR). a) What is the present value of his contract? b) Instead of receiving annual payments, Ted wants to receive equal-dollar-amount-quarterly cheques (first cheque today, last cheque at the end of 2020), how large is his quarterly pay (assuming the present value of his contract remains the same)?