Tim Durant is an Australian professional basketball player in the Australia Basketball league. He is one of the league's most prolific scorers and has been called the best overall player. After completing his last contract with his current team in June 2022, Tim is now free to sign with any team in the league. Burwood-101, one of the most widely supported basketball clubs in the Australia Basketball league, is willing to acquire Tim Durant to help the team become a championship contender for the next season. Burwood-101 has provided the following offer to Tim with three different options. Option 1: A three-year contract, with an annual salary of $502,000, paid annually (i.e., one payment at the end of each year). Option 2: A three-year contract, with an annual salary of $490,000, paid monthly (i.e., 12 equal payments p.a., and each payment will be paid at the end of each month). Option 3: A three-year contract, with an annual salary of $489,000, paid fortnightly (i.e., 26 equal payments p.a., and each payment will be paid at the end of each fortnight). Assuming you are the financial adviser for Tim Durant, answer the following: (1) What concept will you apply to assist Tim in choosing between these three options? Explain how this analysis will help Tim in making a better decision. (200 words (+/- 10%) for Q1 Part (1) ; Including in-text citation) (6 marks) (2) If the current interest rate is 5%, calculate the present value and future value for all three options. Based on your estimation, which option would you recommend Tim to accept? (15 marks) (3) If Tim decides to choose option 1 (i.e., annual taxable income $502,000), based on the following Australia tax rate table, estimate Tim's annual after-tax income (excluding the Medicare levy). (2 marks) Table 1: Australia 2021-2023 income tax rates Taxable income Tax on this income 0 - $18,200 $18,201 $45,000 Nil 19c for each $1 over $18,200 $5,092 plus 32.5c for each $1 over $45,000 $45,001-$120,000 $120,001 - $180,000 $29,467 plus 37c for each $1 over $120,000 $180,001 and over $51,667 plus 45c for each $1 over $180,000 (4) Tim has also received another offer from a Canadian Basketball club in the Alberta province. The club provides him with a three-year contract with an annual salary of 520,000 Canadian dollars (CAD) (i.e., annual taxable income = $520,000CAD). The Canadian government currently charges two types of income taxes to the individual taxpayer - the federal income tax and the provincial income tax; both are estimated based on the taxpayers' annual taxable income and the following Canada tax rates tables. Assuming the exchange rate between the Australian dollar and the Canada dollar is 1 (i.e., equal value): (!!) (i) Estimate Tim's annual after-tax income if he accepts the offer from the Canadian Basketball club in the Alberta province. (5 marks) Assuming everything else remains the same, based on your after-tax income calculation from part (3) and part (4), which offer should Tim accept? The Australian club's offer (i.e., offer 1) or the Canadian club's offer? Explain. (2 marks) Table 2: Canada 2022 Federal income tax rates Taxable income $14,398 $14,399 - $50,197 $50,198 $100,392 $100,393 $155,625 $155,626-$221,708 Tax on this income Nil 15c for each $1 over $14,398 $5,369.85 plus 20.5c for each $1 over $50,197 $15,659.83 plus 26c for each $1 over $100,392 $30,020.41 plus 29c for each $1 over $155,625 $221,709 and over $49,184.48 plus 33c for each $1 over $221,708 Table 3: Canada 2022 Provincial (Alberta) income tax rates Taxable income 0-$131,220 $131,221 $157,464 Tax on this income 10c for each $1 below $131,221 $13,122 plus 12c for each $1 over $131,220 $157,465 $209,952 $16,271.28 plus 13c for each $1 over $157,464 $209,953 $314,928 $314,929 and over $23,094.72 plus 14c for each $1 over $209,952 $37,791.36 plus 15c for each $1 over $314,928