Your favorite football player just signed a 5-year, $50 million dollar contract. Specifically, he will be paid:
5 million today (signing bonus)
5 million in a year
5 million in 2 years
5 million in 3 years
10 million in 4 years
20 million in 5 years
How much is this contract worth in today's dollars if the annual r is 3%?