1. Given your worksheet calculations, which of the following statements is accurate? Is Noah's estimate of the value of Nick's contract accurate on either a nominal or discounted basis? Check all that apply. Noah's estimate of the value of Nick's contract is incorrect on a nominal basis, and the error is $74,814. It is appropriate and necessary to discount the endorsement contract using the bank account's effective annual interest rate because of differences in the timing of the compounding of the bank account and that of the payments on the endorsement contract. It is appropriate and necessary to discount the performance bonus using the bank account's effective annual interest rate because of differences in the timing of the compounding of the bank account and that of the payments for the performance bonus. Related Question: The local car dealer creating Nick's endorsement opportunity can earn 6% (compounded quarterly) on his deposited funds. She would have to deposit S each quarter, starting exactly two years before the day Nick signs his contract, to fund her endorsement contract. [Note: The future value interest factor of 6% compounded quarterly for eight quarterly periods is 8.4328.]