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A famous quarterback just signed a $12.5 million contract providing $2.5 million a year for...

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Finance

A famous quarterback just signed a $12.5 million contract providing $2.5 million a year for 5 years. A less famous receiver signed a $11.5 million 5-year contract providing $4 million now and $1.5 million a year for 5 years. The interest rate is 10%.

a.

What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value $ million

b.

What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value $ million

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