A Noted Free Agent Running Back Just Signed a Four

Multiple Choice

A noted free agent running back just signed a four -year, 30 -million dollar contract with a new team. He will get a 7 -million dollar signing bonus and a 4.5 -million dollar roster bonus. Additionally, he will get 3.25 million for year one, 5.25 million for year two, 5 million for year three, and 5 million for year four. Salary is paid at the end of the first year. Find the present value of his contract if money can earn 6%.

A) $15,897,083.78
B) $27,397,083.78
C) $23,911,000.35
D) $30,000,000