Problem
A sports star can sign a 6-year contract that starts at $1.2M with increases of $0.3M each year for his expected playing career of 6 years. It is also possible to sign a contract that starts at $0.8M for the first year and then increases at $0.2M each year for 10 years (note some income is deferred until after he retires). If his interest rate for the time value of money is 8%, what is the value of each choice?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.