Problem
You have been hired as a financial advisor to James. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is a $15m offer for $3m a year for 5 years. Offer B is a $18m offer of $2m a year for four years and $10m in year 5. What is present value of offer A given 10% discount rate?