Matt, a star basketball player, is looking to join a new NBA team.The Bulls are offering him $24 million for one year.The Heat is offering him $10 million this year and $7.0 million in each of the next two years.The market interest rate is 5 percent.What is the present value of the offer from The Heat in millions (rounded to the nearest one hundred thousand dollars) ?
A) $22.5 million
B) $23.0 million
C) $24.0 million
D) $25.2 million
Correct Answer:
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