Sarfaraz Ahmed is negotiating a sports employment contract. His opportunity cost is 12%. He has been...

Q No. 1 Sarfaraz Ahmed is negotiating a sports employment contract. His opportunity cost is 12%. He has been offered three possible 4-year contracts. Payments are in Pakistani rupees and are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Contract Contract 1 Contract 2 Contract 3 Year 1 3 Million 2 Million 7 Million Year 2 3 Million 3 Million 1 Million Year 3 3 Million 4 Million 1 Million Year 4 3 Million 5 Million 1 Million As his financial adviser, which contract would you recommend that he accept? (Total Marks 2.5)