1.8 The New York Yankees signed pitcher Masahiro Tanaka to a seven-year contract. Because Mr. Tanaka was under contract in Japan with the Golden Eagles, the Yankees paid them $20 million to release him. Mr. Tanaka’s contract calls for payments of $20 million per year for six years and $23 million in year seven. Assuming an 9 percent discount rate and that Mr. Tanaka’s salary is paid annually, starting 12 months after the fee paid the Golden Eagles, what is the present value of the Yankees’ commitment, including the fee paid to the Golden Eagles, on the signing day of the contract?