Which of the following payment terms should a professional athlete prefer in a “ten million dollar” five-year contract if the athlete wants to obtain the greatest present value of income?
A) Receive $2 million each of the next five years.
B) Receive $6 million next year and then receive $1 million in each of the subsequent four years.
C) Receive $1 million in each of the next four years and then receive $6 million in the subsequent year.
D) All of the above have the same present value of income.