Please fill out the Contract Evaluation Worksheet and the problem on the right side of the image.

Harry Hurter has been playing baseball since he Ove years old and has always dreamed of playing in the big leagues. Last season, he starting pitcher for a doubleA (Am-level baseball team, the Moab Mountain Goats; last year, he was the first runner-up for the Minor League Player of the Year using his 96 mph fastball, an unpeccable ball and Slider, and a reliable Changeup pitch, he achieved a 16-3 Winloss record, an earrWd average (ERA) Of 2.98, and 146 in 117.0 pitched. He is also your best friend. TWO weeks On his three-year with the team, Harry received the email from his Noah NeverEmugh, indicating that he is being called up to the Springfield Duste the Mountain Goats's corresponding Major Baseball (MLB) team. Moreover, is R Harry is so excited' According to Noah, the contract is worth recept of an possible bonuses. After rereading the email and calling his family, Harw called you to review the terms of the and verify Noah's calculations. After an extended conversation about what he'll do Hith his newfound you and Han-y have any received could insted to eam monthly. Contract Evaluation Worksheet following worksheet by inserting the appropriate to evaluate the contract and answer the related questions. Note: To clarify of md simphfy yow Assume that an bonuses are earned in eat" of the years for which they are available and are paid at the end of the corresponding unless specincany Stated value shotAd be on the salary effect at the time the bonus were The endorsement proceeds are paid in accordance with the terms of the deal. that timing of a Cash Now affects the interest rate that iS used to discount Cash example, annual interest rates Showd be used to discount annual NOW'S, and monthly interest rates are used to monthly Cash flows. Therefore, it may be necessary to compute the appropriate interest rate that should be used in a dirounting calculation. Round all dollar amounts to the nearest whole donar and Carry Out all interest rate to four deer-nal places. When entering as answer be to round them to the nearest dollar, however when using same 8 being revised to renect his new status. The email describes the general terms and conditions or revised contract. From: Noah NeverEnough To: Harry Hurler Subject: New Team, New Contract Proposal been _cal'ed Sorin afield. Ham,' is so According to Noah, the contract is receipt ot all possible bonuses, After rereading the email twice and calling his family, Harry called you to review the terms or the contract and verity Noah's calculations. After an extended about what he'll do With his newfound you and have agreed that any funds received could be invested to earn 7.00%, compounded monthly. 0 o 3 o z 3 aeate do o z 3 Congratulations! YouVe been called up to the Springfield Dusties. Below are the offered terms and conditions Of your new contract. After you review them and think about the offer, call me and well discuss your options. Congrats again! Salary and Incentives: Harry Hurler 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. 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 $10,000 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 to encourage outstanding performance. The Player is offered the following award-based performance incentive: a bonus if he is designated as the Most Valuable Player (MVP) in the league. The Player is also offered the following milestone bonus: a $250,000 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 at the beginning Of the next Contract year. Although this proposal describes one milestone, the actual contract contains several pmgressive milestones. Exceeding one milestone creates the opportunity to exceed another. In addition to the proposal offered by the Dusties, I We been able to secure the following endorsement opportunity : A local Car dealer has Offered you a Contract that Will pay $2,750 per month for two years. This contract is contingent on your accepting the contract with the Dusties 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. mze also attached a worksheet that you can use to analyze the deal. I'm in negotiations for the rest of the day, so Iet% discuss your thoughts on the contract proposal tomorrow. I'm proud of you! Take Care, Noah Never-Enough 8 10 23 26 29 c.' 64 54 cee 35 cee B4 10.0 S 13651% 0.8111 0.811 t 373736953403 3 n.S5n