The contracts signed in December 2020 by James McCann that we discussed at the beginning of the chapter called for $600,000 signing bonus to be paid immediately, an $8 million salary per year for 2021 and 2022, and a $12 million salary per year for 2023 and 2024. If the appropriate interest rate is 11 percent, what kind of deal did the catcher dig out of the dirt? Assume all payments other than the signing bonus are paid at the end of each year.

Compare and contrast deal by using present value.