Arookie quarterback is negotiating his first nfl contract. his opportunity cost is 10%. he has been offered three possible 4-year contracts. payments are guaranteed, and they would be made at the end of each year. terms of each contract are as follows: 1 2 3 4 contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 contract 2 $2,500,000 $3,000,000 $4,000,000 $5,000,000 contract 3 $7,000,000 $1,500,000 $1,500,000 $1,500,000 as his advisor, which contract would you recommend that he accept?
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