Bryce Harper reportedly signed a 10 year $300 Million deal to play for the Phillies. Aside from incentives, the deal pays him a $50 Million dollar signing bonus, $20 Million for the first 5 years, starting a year from now and $30 Million for the remaining 5 years. What is the value of this contract if his required return is 7% per year? If his options on alternative investments falls to 5% how will this impact the value of his contract?

Suppose Bryce puts the entire $50 Million signing bonus in an investment account returning 7%/ year compounded monthly? How much will that account be worth when his contract expires?