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You Are a Sports Agent Who Is Representing Jack Lofton

Question 3

Multiple Choice

You are a sports agent who is representing Jack Lofton, a star football player, in contract negotiations with the New York Landmarks. The Landmarks have offered Lofton a four-year contract, with annual raises and performance bonuses that will result in a growing cash-flow stream for Lofton each year. Which table factor(s) should you use to most efficiently determine the "value" of the contract?


A) Future value of $1.
B) Future value of a $1 annuity.
C) Present value of $1.
D) Present value of a $1 annuity.
E) Both Present value of $1 and Present value of a $1 annuity.

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