8. A baseball player is offered a 3-year, $36 million contract which pays him the following amounts at the end of each year: Year 1: $9 million Year 2: $12 million Year 3: $15 million Instead of accepting the contract, the player asks for a contract that has the team paying the same total amount, but payments are equal ($12 million a year) and come at the beginning of each year for the 3 years instead of the end of the year (3 total payments). Assuming that the appropriate discount rate is 6% per year, what is the difference in the present value of two offers?

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