Bart Simpson just signed a multi-year contract as the quarterback of the Springfield Isotones. The Shelbyville Gazette claims that his contract is worth $28.5 million. Bart claims that this is not true in a present value sense and that he will really be making the following amounts at the end of the next five years: Year Amount 0(now) $5.5 million (signing bonus) 1 $4 million 2 $4 million 3 $4 million 4 $4 million 5 $7 million a) Assuming that Bart can make 7% on his investments, what is the present value of his contract? b) If you wanted to raise the nominal value of his contract to $30 million, while preserving the present value, how would you do it? (You can only adjust the signing bonus and the final years cash-flow.)