$*$ Nick Nohitter hereafter referred to as the "Player," is offered a four$-$year contract with an annual salary of $$564,000$ per year, to be paid at the end of each month in the contract term.$*$ Under the league's collective bargaining agreement, the Player will receive a $4\%$ cost$-$of$-$living adjustment $($COLA$)$ to his annual salary at the beginning of every other year. This means that the Player's annual salary will increase at the beginning of year $2$ and year $4,$ as applicable.$*$ In addition, the Player will receive a one$-$time $$20,000$ time$-$in$-$league bonus after six months of participation with an MLB team. This bonus will be paid 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 $$75,000$bonus if he ties Nolan Ryan's $1973$ single$-$season strikeout record $(383$ strikeouts$).*$ The Player is eligible for each potential bonus each year that the contract is in effect and, if expressed as a percentage, will be based on the value of the Player's base annual salary for the corresponding year. If earned, the performance and milestone bonuses will be distributed in a single payment at the beginning of the next contract year. Although this proposal describes only one milestone, the actual contract contains several progressive milestones.$*$ Exceeding one milestone creates the opportunity to exceed another.$*$ In addition to the proposal offered by the Wizards, I've also been able to secure the following endorsement opportunity:$*$ A local car dealer has offered you a contract that will pay $$750$ per month for two$*$ years. This contract is contingent on your accepting the contract with the Wizards and will take effect immediately upon signing your MLB contract. In return for these payments, you will participate in the dealer's promotional events, such as signing autographs and allowing photographs as requested. Nick is so excited! According to Noah, the contract is worth $$2,974,400-$assuming receipt of all possible bonuses. After rereading the email twice and calling his family, Nick called you to review the terms of the contract and verify Noah's calculations. After an extended conversation about what he'll do with his newfound wealth, you and Nick have agreed that any funds received could be invested to earn $6\mathrm{.}00\%,$ compounded monthly.$*$ Contract Evaluation Worksheet$15$ Discounted Time$-$in$-$League Bonus

$16$

$17$ Milestone Bonus

$18$ Discount factor $($based on

$0\mathrm{.}9419$

$0\mathrm{.}8872$

$0\mathrm{.}8356$

$0\mathrm{.}7871$

Cell B$5$ above$)$

$19$ Discounted Milestone Bonus

$20$

$21$ Performance Bonus

$22$ Discount factor $($based on

$0\mathrm{.}9419$

$0\mathrm{.}8872$

$0\mathrm{.}8356$

$

Cell B$5$ above$)$

$23$ Discounted Performance

Bonus

$24$

$25$ Monthly Endorsement

Contract Payment

$26$ Discount factor $($based on $11\mathrm{.}6189$

$10\mathrm{.}9439$

Cell B$4$ above$)$

$27$ Discounted Monthly

Endorsement Payment