I HAVE THE QUESTION ATTACHED BY PARTS IN IMAGES PLEASE ANSWER THIS QUESTION CORRECTLY ASAP IT WOULD BE HELPFUL
Saleem Swingman 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 Dodge City Cowboys; last year, he was the first runner-up for the Minor League Player of the Year award. Using his 96 mph fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a 163 win-loss record, an earned run average (ERA) of 2.98, and 146 strikeouts in 117.0 innings pitched. He is also your best friend. Two weeks ago, on his three-year anniversary with the team, Saleem received the following email from his agent, George Get-d'Bucks, indicating that he is being called up to the Wichita Wizards, the Cowboys's corresponding Major League Baseball (MLB) team. Moreover, Saleem's contract is being revised to reflect his new status. The email describes the general terms and conditions of Saleem's revised contract. Saleem is so excited According to George, the contract is worth $2,860,400 assuming 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 George's calculations. After an extended conversation about what he'l do with his newfound wealth, you and Saleem have agreed that any funds recelved could be invested to earn 9.00%, compounded monthly. Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and answer the related questions. Note: To clarify possible sources of confusion and simplify your calculations: - Assume that all bonuses are earned in each of the years for which they are available and are paid at the end of the corresponding year(s), unless specifically stated differently. Their value should be based on the salary in effect at the time the bonuses were earned. - The endorsement proceeds are paid in accordance with the terms of the deal. - Remember that the timing of a cash flow affects the interest rate that is used to discount the cash flow. For example, annual interest rates should be used to discount annual cash flows, and monthly interest rates are used to discount monthly cash flows. Therefore, it may be necessary to compute the appropriate interest rate that should be used in a discounting calculation. - Round all dollar amounts to the nearest whole dollar and carry out all interest rate factors to four decimal places. - When entering intermediate values as answer choices, be sure to round them to the nearest dollar, however when using those same values to calculate another answer, do not round. - Saleem Swingman hereafter referred to as the "Player," is offered a four-year contract with an annual salary of $474,000 per year, to be paid at the end of each month in the contract term. - 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 beginning of year 2 and year 4 , as applicable. - In addition, the Player will receive a one-time $20,000 time-in-league bonus after six months of participation with an MLB team. This bonus will be paid - 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 payable at the end of the operating year if he is selected to play in the All-Star game. The Player is also offered the following milestone bonus: a $150,000 bonus if he ties Nolan Ryan's 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 Saleem Swingman's Contract Evaluation Morksheet on either a nominal or discounted basis? Check air that apply. It is appropriate and necessary to discount the endorsement contract using the bank account's effective annul interest rate because of differences in the timing of the compounding of the bank account and that of the payments on the endorsement contract. George's estimate of the value of Saleem's contract is incorrect on a naminal basis, and the error is $2B,088. 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. Related Question: The local car dealer creating Saleem's endorsement opportunity can earn 6% (compounded quarteriy) on his deposited funds. She would have to deppsit each quarter, starting exactly two years before the day Saleern signs his contract, to fund her endorsement contract. [Note: The future value interest factor of 6% compounded quarterly for eight quarterly periods is 8.4328. ] Saleem Swingman 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 Dodge City Cowboys; last year, he was the first runner-up for the Minor League Player of the Year award. Using his 96 mph fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a 163 win-loss record, an earned run average (ERA) of 2.98, and 146 strikeouts in 117.0 innings pitched. He is also your best friend. Two weeks ago, on his three-year anniversary with the team, Saleem received the following email from his agent, George Get-d'Bucks, indicating that he is being called up to the Wichita Wizards, the Cowboys's corresponding Major League Baseball (MLB) team. Moreover, Saleem's contract is being revised to reflect his new status. The email describes the general terms and conditions of Saleem's revised contract. Saleem is so excited According to George, the contract is worth $2,860,400 assuming 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 George's calculations. After an extended conversation about what he'l do with his newfound wealth, you and Saleem have agreed that any funds recelved could be invested to earn 9.00%, compounded monthly. Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and answer the related questions. Note: To clarify possible sources of confusion and simplify your calculations: - Assume that all bonuses are earned in each of the years for which they are available and are paid at the end of the corresponding year(s), unless specifically stated differently. Their value should be based on the salary in effect at the time the bonuses were earned. - The endorsement proceeds are paid in accordance with the terms of the deal. - Remember that the timing of a cash flow affects the interest rate that is used to discount the cash flow. For example, annual interest rates should be used to discount annual cash flows, and monthly interest rates are used to discount monthly cash flows. Therefore, it may be necessary to compute the appropriate interest rate that should be used in a discounting calculation. - Round all dollar amounts to the nearest whole dollar and carry out all interest rate factors to four decimal places. - When entering intermediate values as answer choices, be sure to round them to the nearest dollar, however when using those same values to calculate another answer, do not round. - Saleem Swingman hereafter referred to as the "Player," is offered a four-year contract with an annual salary of $474,000 per year, to be paid at the end of each month in the contract term. - 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 beginning of year 2 and year 4 , as applicable. - In addition, the Player will receive a one-time $20,000 time-in-league bonus after six months of participation with an MLB team. This bonus will be paid - 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 payable at the end of the operating year if he is selected to play in the All-Star game. The Player is also offered the following milestone bonus: a $150,000 bonus if he ties Nolan Ryan's 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 Saleem Swingman's Contract Evaluation Morksheet on either a nominal or discounted basis? Check air that apply. It is appropriate and necessary to discount the endorsement contract using the bank account's effective annul interest rate because of differences in the timing of the compounding of the bank account and that of the payments on the endorsement contract. George's estimate of the value of Saleem's contract is incorrect on a naminal basis, and the error is $2B,088. 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. Related Question: The local car dealer creating Saleem's endorsement opportunity can earn 6% (compounded quarteriy) on his deposited funds. She would have to deppsit each quarter, starting exactly two years before the day Saleern signs his contract, to fund her endorsement contract. [Note: The future value interest factor of 6% compounded quarterly for eight quarterly periods is 8.4328. ]
