Application of Time value of Money Skills season, he was a starting pitcher Harry Hurler has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last the Year award. Using his for a double-A (AA)-level baseball team, the Dodge City Cowboys; last year, he was the first runner-up for the Minor League Player of average (ERA) of 2.98, 96 mph fastball, impeccable curve ball and slider, and a reliable changeup pitch, he achieved a 16-3 win-loss record, an earned run an and 146 strikeouts in 117.0 innings pitched. He is also your best friend. Two weeks ago, on his three-year anni with the team, Harry received the following email from his agent, Steven Sign'em-Now, indicating that he is being called up to the Wichita Wizards, Cowboys's corresponding Major League Baseball (MLB) team. Moreover, Harry's contract is being revised to reflect his new the status. The emal describes the general terms and conditions of Harry's revised contract. From: Steven Sign'em-Now Harry Hurler To: Subject: New Team, New Contract Proposal Congratulations You've been called up to the wichita wizards. Below are the offered terms and conditions of your new contract. After you review them and think about the offer, call me and we'l discuss your options. Congrats again! Salary and incentives Harry Murwer, hereafter referred to as the Player," is offered a four year contract with an annual salary of $534,000 per year to Harry is so excitedl According to Steven, the contract is worth s2,816,400-assuming receipt of all possible bonuses. Aner rereading the email twice and calling his family, Harry called you to review the terms of the contract and verify Steven's calculations. After an extended conversation about what he" do with his newMound wealth, you and Harry have agreed that any funds received could be invested to earn 5.0000%, compounded monthly, Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and answer the related questions. Note: To clarify possible sources of confusion and simplify your calculations Assume that all bonuses are earned in each of the years for which they are available and are paid at the end of the correspond ng year(s), unless specifically stated differently. Their value should be based on the salary in effect at the time the bonuses were earned accordance with the terms of the deal The endorsement proceeds are paid in Application of Time value of Money Skills season, he was a starting pitcher Harry Hurler has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last the Year award. Using his for a double-A (AA)-level baseball team, the Dodge City Cowboys; last year, he was the first runner-up for the Minor League Player of average (ERA) of 2.98, 96 mph fastball, impeccable curve ball and slider, and a reliable changeup pitch, he achieved a 16-3 win-loss record, an earned run an and 146 strikeouts in 117.0 innings pitched. He is also your best friend. Two weeks ago, on his three-year anni with the team, Harry received the following email from his agent, Steven Sign'em-Now, indicating that he is being called up to the Wichita Wizards, Cowboys's corresponding Major League Baseball (MLB) team. Moreover, Harry's contract is being revised to reflect his new the status. The emal describes the general terms and conditions of Harry's revised contract. From: Steven Sign'em-Now Harry Hurler To: Subject: New Team, New Contract Proposal Congratulations You've been called up to the wichita wizards. Below are the offered terms and conditions of your new contract. After you review them and think about the offer, call me and we'l discuss your options. Congrats again! Salary and incentives Harry Murwer, hereafter referred to as the Player," is offered a four year contract with an annual salary of $534,000 per year to Harry is so excitedl According to Steven, the contract is worth s2,816,400-assuming receipt of all possible bonuses. Aner rereading the email twice and calling his family, Harry called you to review the terms of the contract and verify Steven's calculations. After an extended conversation about what he" do with his newMound wealth, you and Harry have agreed that any funds received could be invested to earn 5.0000%, compounded monthly, Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and answer the related questions. Note: To clarify possible sources of confusion and simplify your calculations Assume that all bonuses are earned in each of the years for which they are available and are paid at the end of the correspond ng year(s), unless specifically stated differently. Their value should be based on the salary in effect at the time the bonuses were earned accordance with the terms of the deal The endorsement proceeds are paid in
