Solve Each of the Following Independent Cases Using the Present

Essay

Solve each of the following independent cases using the present value tables.
The following are actual contracts signed by athletes:
a.$25,000,000 contract,payable at $2,500,000 per year for 10 years.
b.$25,000,000 contract,payable at $1,000,000 per year for 25 years.
c.$25,000,000 contract,payable at $1,562,500 per year for 16 years.
Determine the present value of each contract and indicate which contract you would prefer to have.Assume a 12% interest rate.