2. You have been hired as a financial advisor to Kansas City Chiefs quarterback, Patrick Mahomes. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is a $35m offer for $7m a year for 5 years. Offer B is a $36m offer of $5m a year for four years and $16m in year 5. What is your advice? (Hint: compare the present value of each contract by assuming a range of interest rate, say 1% - 7%). Show all the work

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. You have been hired as a financial advisor to Kansas City Chiefs quarterback, Patrick Mahomes. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is a $35m offer for $7m a year for 5 years. Offer B is a $36m offer of $5m a year for four years and $16m in year 5. What is your advice? (Hint: compare the present value of each contract by assuming a range of interest rate, say 1% - 7%). Show all the work

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