In 2000, a star major-league baseball player signed a 10-year, $257 million dollar contract with the Texas Rangers. Assume that equal payments would have been made each year to this individual and that the owners cost of capital (discount rate) was 11% at the time the contract was signed. What is the present value cost of the contract to the owners as of January 1, 2000, the date the contract was signed, in each of the following independent situations? (Use Table 1 and Table 2.) (Round your answers to the nearest whole dollar amount and not in millions.)

1) The baseball player received the first payment on December 31, 2000.

Present Value:

2) The baseball player received the first payment on January 1, 2000, the date the contract was signed.

Present Value:

3) Assuming the owner is in the 43% income tax bracket, calculate your answer for requirement 1

Present Value: