Kick Is Looking to Play for a U

Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following
Three years. The market interest rate is 5 percent. Which offer is the better deal in terms of present
Value in millions?

A) D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire
B) D.C. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire
C) Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United
D) Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United