A famous quarterback just signed a contract for 18 million, providing 3.6 million a year for 5 years. A less famous receiver signed a contract for 17 million, providing 4 million now and 2.6 million a year for 5 years. The interest rate is 10%.
a. What is the present value of the quarterback's contract?
b. What is the present value of the receiver's contract?
c. Who is better paid?