Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete the table based on this dataL From: Noah Never - Enough To: Saleem Swingman Subject: New Team, New Contract Proposal Saleem, Congratulations! You ve

Complete the table based on this dataL From: Noah Never-Enough
To: Saleem Swingman
Subject: New Team, New Contract Proposal
Saleem,
Congratulations! Youve been called up to the Springfield Dusties. Below are the offered terms and conditions of your new contract. After you review them and think about the offer, call me and well discuss your options. Congrats again!
Salary and Incentives:
Saleem Swingman hereafter referred to as the Player, is offered a four-year contract with an annual salary of $414,000 per year, to be paid at the end of each month in the contract term.
Under the leagues collective bargaining agreement, the Player will receive a 4% cost-of-living adjustment (COLA) to his annual salary at the beginning of every other year. This means that the Players annual salary will increase at the beginning of year 2 and year 4, as applicable.
In addition, the Player will receive a one-time $15,000 time-in-league bonus after six months of participation with an MLB team. This bonus will be paid immediately on completion of the six-month period.
The Player is offered a performance-based bonus, as well as a milestone bonus. Both are intended to encourage outstanding performance.
The Player is offered the following award-based performance incentive: a 15% bonus if he is designated as the Most Valuable Player (MVP) in the league. The Player is also offered the following milestone bonus: a $150,000 bonus if he ties Nolan Ryans 1973 single-season strikeout record (383 strikeouts).
The Player is eligible for each potential bonus each year that the contract is in effect and, if expressed as a percentage, will be based on the value of the Players base annual salary for the corresponding year. If earned, the performance and milestone bonuses will be distributed in a single payment at the beginning of the next contract year. Although this proposal describes only one milestone, the actual contract contains several progressive milestones. Exceeding one milestone creates the opportunity to exceed another.
In addition to the proposal offered by the Dusties, Ive also been able to secure the following endorsement opportunity:
A local car dealer has offered you a contract that will pay $3,000 per month for two years. This contract is contingent on your accepting the contract with the Dusties and will take effect immediately upon signing your MLB contract. In return for these payments, you will participate in the dealers promotional events, such as signing autographs and allowing photographs as requested.
Ive also attached a worksheet that you can use to analyze the deal. Im in negotiations for the rest of the day, so lets discuss your thoughts on the contract proposal tomorrow. Im proud of you!
Take care,
Noah
Noah Never-Enough
Sports Agent, R&R Talent Management Inc. | Springfield
Saleem is so excited! According to Noah, the contract is worth $2,564,400assuming receipt of all possible bonuses. After rereading the email twice and calling his family, Saleem called you to review the terms of the contract and verify Noahs calculations. After an extended conversation about what hell do with his newfound wealth, you and Saleem have agreed that any funds received could be invested to earn 5.50%, compounded monthly.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

8th Edition

0071078401, 978-0071078405

More Books

Students also viewed these Finance questions

Question

Wse the following com hunes quoted: Question 20 IL) Q.estion 19 20

Answered: 1 week ago

Question

How We Listen?

Answered: 1 week ago