A Noted Free Agent Running Back Just Signed a 4

question 7

Multiple Choice

A noted free agent running back just signed a 4 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 1,5.25 million for year 2,5 million for year 3 and 5 million for year 4.Salary is paid at the end of the 1 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