The Springfield Crusaders just signed their quarterback to a 10 year $50 million contract.Is this contract really worth $50 million? (assume r >0)
A) Yes, because the payments over time add up to $50 million.
B) No, it is worth more because he can invest the money.
C) No, it would only be worth $50 million if it were all paid out today.
D) Yes, because his agent told him so.
Correct Answer:
Verified
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