4. Regine believes the Orioles might have some hesitation about locking in Scialomie for five years, so she thinks about proposing a four-year contract instead of the five-year deal. In such an offer, she knows that there needs to be enough deferred compensation so that Scialomie's 4. Regine believes the Orioles might have some hesitation about locking in Scialomie for five years, so she thinks about proposing a four-year contract instead of the five-year deal. In such an offer, she knows that there needs to be enough deferred compensation so that Scialomie's salary over the four years of playing does not overly burden team payroll. Design two contract counteroffers for Regine to present to the Orioles. They must be structured differently from each other-to give the Orioles some options--and both must meet the following characteristics: a. The contract has a total PV of between $15.5m and $16.0m, assuming a 5.5% discount rate b. Scialomie must earn at least $0.6m (nominal value) in each of the playing years c. There is deferred compensation build into the contract. Table 2 Contract Offers from the Orioles (All Dollar Figures are in Millions) Signing Total Offer bonus Playing salary Deferred compensation nominal (paid at to) per year (tts) value #1 $2.75 $2.75 None $16.5 #2 None $1.5 $3 annually, for 5 years, starting in year 8 $22.5 Average salary reported in media $3.3 $4.5 #3 None $1.5 $23.4 $4.7 A 10-year growing annuity that starts with SI in year 9 (to-t18) and grows at 10% per year A lump sum (single payment) of S25 at t20 #4 None $1.1 $30.5 $6.1 4. Regine believes the Orioles might have some hesitation about locking in Scialomie for five years, so she thinks about proposing a four-year contract instead of the five-year deal. In such an offer, she knows that there needs to be enough deferred compensation so that Scialomie's 4. Regine believes the Orioles might have some hesitation about locking in Scialomie for five years, so she thinks about proposing a four-year contract instead of the five-year deal. In such an offer, she knows that there needs to be enough deferred compensation so that Scialomie's salary over the four years of playing does not overly burden team payroll. Design two contract counteroffers for Regine to present to the Orioles. They must be structured differently from each other-to give the Orioles some options--and both must meet the following characteristics: a. The contract has a total PV of between $15.5m and $16.0m, assuming a 5.5% discount rate b. Scialomie must earn at least $0.6m (nominal value) in each of the playing years c. There is deferred compensation build into the contract. Table 2 Contract Offers from the Orioles (All Dollar Figures are in Millions) Signing Total Offer bonus Playing salary Deferred compensation nominal (paid at to) per year (tts) value #1 $2.75 $2.75 None $16.5 #2 None $1.5 $3 annually, for 5 years, starting in year 8 $22.5 Average salary reported in media $3.3 $4.5 #3 None $1.5 $23.4 $4.7 A 10-year growing annuity that starts with SI in year 9 (to-t18) and grows at 10% per year A lump sum (single payment) of S25 at t20 #4 None $1.1 $30.5 $6.1