Flynn fireballer has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last season, he was aFlynn fireballer has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last season, he was a

starting pitcher for a double$-$A $($AA$)-$level baseball team, the Mab Mountain Goats; last year, he was the first runner$-$up for the Minor League Player of

the Year award. Using his $97mph$ fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a $17-3$ win$-$loss record, an

earned run average $($ERA$)$ of $2\mathrm{.}84,$ and $108$ strikeouts in $123\mathrm{.}1$ innings pitched. He is also your best friend.

Two weeks ago, on his three$-$year anniversary with the team, Flynn received the following email from his agent, Steven Sign'em$-$Now, indicating that

he is being called up to the Mobile Bayhoppers, the Mountain Goats's corresponding Major League Baseball $($MLB$)$ team. Moreover, flynn$\text{'}$s contract is

being revised to rellect his new status. The email describes the general terms and conditions of flynn$\text{'}$s revised contract.

Flynn is so excited! According to Steven, the contract is worth $$2,860,400-$assuming receipt of all possible bonuses. After rereading the email twice

and calling his family, Flynn called you to review the terms of the contract and verily Steven's calculations. After an extended corversation about what

helll do with his newound wealth, you and Flynn have agreed that any funds received could be irvested to earn $6\mathrm{.}00\%,$ compounded monthly.

Flynn Fireballer's Contract Evaluation Worksheet

Given your worksheet calculations, which of the following statements is accurate? Is Steven's estimate of the value of Flymn$\text{'}$s contract accurate on

either a nominal or discounted basis? Check all that apply.

$$ It is appropriate and necessary to discount the performance bonus using the bank account's effective annual interest rate because of

differences in the timing of the compounding of the bank account and that of the payments for the performance bonus.

$$ Steven's estimate of the value of Flynn$\text{'}$s contract is incorrect on a nominal basis, and the error is $$28,088.$

$$ Steven's estimate of the nominal value of Flyrn$\text{'}$s contract is correct.ng revised to rellect his new status. The email describes the general terms and conditions of flynn$\text{'}$s revised contract.

Under the league's 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 Player's annual salary will increase at

the

starting pitcher for a double$-$A $($AA$)-$level baseball team, the Mab Mountain Goats; last year, he was the first runner$-$up for the Minor League Player of

the Year award. Using his $97mph$ fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a $17-3$ win$-$loss record, an

earned run average $($ERA$)$ of $2\mathrm{.}84,$ and $108$ strikeouts in $123\mathrm{.}1$ innings pitched. He is also your best friend.

Two weeks ago, on his three$-$year anniversary with the team, Flynn received the following email from his agent, Steven Sign'em$-$Now, indicating that

he is being called up to the Mobile Bayhoppers, the Mountain Goats's corresponding Major League Baseball $($MLB$)$ team. Moreover, flynn$\text{'}$s contract is

being revised to rellect his new status. The email describes the general terms and conditions of flynn$\text{'}$s revised contract.

Flynn is so excited! According to Steven, the contract is worth $$2,860,400-$assuming receipt of all possible bonuses. After rereading the email twice

and calling his family, Flynn called you to review the terms of the contract and verily Steven's calculations. After an extended corversation about what

helll do with his newound wealth, you and Flynn have agreed that any funds received could be irvested to earn $6\mathrm{.}00\%,$ compounded monthly.

Flynn Fireballer's Contract Evaluation Worksheet

Given your worksheet calculations, which of the following statements is accurate? Is Steven's estimate of the value of Flymn$\text{'}$s contract accurate on

either a nominal or discounted basis? Check all that apply.

$$ It is appropriate and necessary to discount the performance bonus using the bank account's effective annual interest rate because of

differences in the timing of the compounding of the bank account and that of the payments for the performance bonus.

$$ Steven's estimate of the value of Flynn$\text{'}$s contract is incorrect on a nominal basis, and the error is $$28,088.$

$$ Steven's estimate of the nominal value of Flyrn$\text{'}$s contract is correct.