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In: Finance

you are the agent of mr. jeff okudah, the ohio state university corner back, who was...

you are the agent of mr. jeff okudah, the ohio state university corner back, who was drafted in the first round by the detroit lions. you are negotiating a five year contract for mr. pkudah. the detroit lions make the following offers: (a) $13. 25 million at the end of each year for the next 5 years. (b) $12.75 million at the beginning of each year for the next 5 years. (c) a signing bonus of $20 million today and $8.9 million at the end of each year for the next 5 years. (d) $12.75 million in year 1 and subsequent annual compensation will increase at 3 percent per year until year 5. find the present value (PV) of each of these four offers. which offer would you reccomend that mr. okudah accept if the interest rate is 8.5 percent . if you were representing the lions, which option would you want mr. okudah to accept?

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