Multiple Choice
Michael received a professional baseball contract paying $7,000,000 per year for 5 years,Bert received a two-year contract for $16,000,000 per year.For purposes of calculations,treat these contracts as ordinary annuities.Who's contract has a greater present value if we assume a discount rate of 6%?
A) Bert = $29,334,283
B) Michael = $29,486,547
C) Bert = $39,459651
D) Michael = $39,743,196
Correct Answer:
Verified
Correct Answer:
Verified
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