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Suppose you play baseball in college and get drafted by the Yankees. They offer you a minor league contract with a value of $250,000 to

Suppose you play baseball in college and get drafted by the Yankees. They offer you a minor league contract with a value of $250,000 to be split into three equal payments. The payments will occur annually beginning a year from today. In addition, you will receive a signing bonus of $75,000 today. What is the value of this contract to you today if the applicable interest rate is 8%, compounded annually?

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