Part 1: Annuities and Delayed Annuities Early in 2019, Bryce Harper signed a 13-year, $330mm contract with the Philadelphia Phillies. He also turned down a 10-year $300mm contract with the Washington Nation als. It turns out that the Nationals offered a contract with a lot of deferred money. The purpose of this part of the assignment is to compare the value of the two contracts. Because the contracts have some differences, we will make some simplifying assumptions, particularly for the Nationals contract. Assume a 5% discount rate (annual rate that is mally compounded for this part of the assignment 1. Calculate the present value of the Phillies' offer. $25.385mm each year from t = 1 to t = 13. 2. Calculate the present value of the Nationals' offer. $20mm each year from t = 1 to t = 10 $4.17mm each year from t 11 to t = 34 (the deferred part of the contract) $20mm each year from t = 11 to t=13 This is not really part of the Nationals' offer, but to make the contract lengths comparable, let's assume that Harper would have signed a 3-year, $60mm contract after the Nationals contract expired