A professional footy player and his agent are evaluating three contract options to play in the Australian Football League (AFL). Each option offers a signing bonus and a series of payments over the life of the contract. The player uses 7.25% rate of return (compounded annually) to evaluate the options.    Year Cash flow Richmond Football Club Hawthorn Football Club Collingwood Football Club 0 signing bonus $3,500,000 $3,500,000 $3,500,000 1 Annual Salary $700,000 $850,000 $775,000 2 Annual Salary $750,000 $800,000 $775,000 3 Annual Salary $800,000 $750,000 $775,000 4 Annual Salary $850,000 $700,000 $775,000     Using the information provided above, which contract should be chosen?

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