1. Application of Time Value of Money Skills Aa Aa E As the son of a Major League Baseball (MLB) player, Luis Longball has been playing baseball since he was old enough to hold a bat, and he has always dreamed of following in his father's footsteps. For the past four years, he's been the starting center fielder for the Moab Mountain Goats, a double-A (AA)-level baseball team. Last year, based on his outstanding fielding and hitting record, including 123 runs batted in (RBI) and 26 home runs, he was selected to receive the Minor League Player of the Year award Yesterday, in a telephone conversation with his agent, Marty Fineprint, Luis learned that he's being called up to the big leagues and traded to the Springfield Dusties! In fact, he's supposed to report to the coach of the Dusties next Monday. To add another source of change to his world, Luis and Marty must negotiate a new contract with Elijah Stone, the general manager of the Dusties. Luis and Marty are having a prenegotiation conversation: Marty Luis, we need to review and agree on the numbers and provisions that I'm going to propose to Elijah later this afternoon. Luis Cool! I am so excited! I checked the league standings this morning, and the Dusties are currently in second place in the league. My dad said that they are on fire so far this season, and if they can continue their current level of performance, they no, I mean we could qualify for the playoffs by mid-September. Wouldn't that be incredible? Marty Yeah, kid, it would. But let's focus on today's contract negotiations. I want your input, so let's run down my list of thoughts and then we can talk about your move and your transition to Springfield Luis Ok, what's on your list? Marty First, I'm proposing a three-year salary equal to 15% greater than the MLB's minimum player salary of $414,000. This should bring your annual salary to $476,100 per year for each of the next three years. My rationale is that if you do really well during the next three years, then we can renegotiate your contract sooner and go for the really big bucks in three-rather than in four or five-years Remember that you will be paid at the end of each month, and don't worry about the effect of taxes at this stage of the deal. We'll worry about your federal and state taxes once we meet with your financial planner. 1. Application of Time Value of Money Skills Aa Aa E As the son of a Major League Baseball (MLB) player, Luis Longball has been playing baseball since he was old enough to hold a bat, and he has always dreamed of following in his father's footsteps. For the past four years, he's been the starting center fielder for the Moab Mountain Goats, a double-A (AA)-level baseball team. Last year, based on his outstanding fielding and hitting record, including 123 runs batted in (RBI) and 26 home runs, he was selected to receive the Minor League Player of the Year award Yesterday, in a telephone conversation with his agent, Marty Fineprint, Luis learned that he's being called up to the big leagues and traded to the Springfield Dusties! In fact, he's supposed to report to the coach of the Dusties next Monday. To add another source of change to his world, Luis and Marty must negotiate a new contract with Elijah Stone, the general manager of the Dusties. Luis and Marty are having a prenegotiation conversation: Marty Luis, we need to review and agree on the numbers and provisions that I'm going to propose to Elijah later this afternoon. Luis Cool! I am so excited! I checked the league standings this morning, and the Dusties are currently in second place in the league. My dad said that they are on fire so far this season, and if they can continue their current level of performance, they no, I mean we could qualify for the playoffs by mid-September. Wouldn't that be incredible? Marty Yeah, kid, it would. But let's focus on today's contract negotiations. I want your input, so let's run down my list of thoughts and then we can talk about your move and your transition to Springfield Luis Ok, what's on your list? Marty First, I'm proposing a three-year salary equal to 15% greater than the MLB's minimum player salary of $414,000. This should bring your annual salary to $476,100 per year for each of the next three years. My rationale is that if you do really well during the next three years, then we can renegotiate your contract sooner and go for the really big bucks in three-rather than in four or five-years Remember that you will be paid at the end of each month, and don't worry about the effect of taxes at this stage of the deal. We'll worry about your federal and state taxes once we meet with your financial planner