Greg McBrown has just signed a four year contract to play for a professional ice hockey team. He will receive $2.5M this year, $3.5M next year, $3.7M in the third year, and $4.0M for the final year. Assume all payments are made at the end of each year.

(a) What is the present value of his contract if his discount rate is 4.5% EAR?

(b) If he wanted instead to receive equal monthly payments at the beginning of each month, with the first cheque today, how much would the monthly cheque be? Assume all interest rates are 4.5% EAR.