Bob Smith signed a 12 year contract with the World Champion Los Angeles Dodgers. Simplifying some of the particulars, his $365 million dollar (undiscounted) contract included the following features1: A $65 million dollar signing bonus, paid immediately. A salary of $17 million paid at the end of each of the next 12 years. A modest retirement stipend of $8 million paid each year for years 13-24. 6. Suppose the relevant discount rate is 6%. What is the present value of the contract?