Kick is looking to play for a U.S. MLS team. D.C. United is offering him $50 million for his first year. The Chicago Fire is offering him $25 million his first year and $10 million per year for the following three years. The market interest rate is 5 percent. Which offer is the better deal in terms of present value in millions?
A. D.C. United, because it will pay him $50 million compared with $48.1 million from Chicago Fire
B. D.C. United, because it will pay him $50 million compared with $46.8 million from Chicago Fire
C. Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United
D. Chicago Fire, because it will pay him $55 million compared with $50 million from D.C. United
C. Chicago Fire, because it will pay him $52.2 million compared with $50 million from D.C. United
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Answer the following statement true (T) or false (F)