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 on the last day of the corresponding year. Their value should be based on the salary in effect at the time the bonuses are 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