Flynn Fireballer has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last season, he was a starting pitcher for a double$-$A $($AA$)-$level baseball team, the Dodge City Cowboys; last year, he was the first runner$-$up for the Minor League Player of the Year award. Using his $93$ mph fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a $15-2$ win$$loss record, an earned run average $($ERA$)$ of $2\mathrm{.}76,$ and $123$ strikeouts in $99\mathrm{.}1$ innings pitched. He is also your best friend.

Two weeks ago, on his three$-$year anniversary with the team, Flynn received the following email from his agent, Steven Sign$$em$-$Now, indicating that he is being called up to the Mobile Bayhoppers, the Cowboys$$s corresponding Major League Baseball $($MLB$)$ team. Moreover, Flynn$$s contract is being revised to reflect his new status. The email describes the general terms and conditions of Flynn$$s revised contract.

Flynn is so excited! According to Steven, the contract is worth $$2,520,400$assuming receipt of all possible bonuses. After rereading the email twice and calling his family, Flynn called you to review the terms of the contract and verify Steven$$s calculations. After an extended conversation about what he$$ll do with his newfound wealth, you and Flynn have agreed that any funds received could be invested to earn $8\mathrm{.}50\%,$ compounded monthly.

Contract Evaluation Worksheet

Complete the following worksheet by inserting the appropriate values to evaluate the contract and answer the related questions. Note: To clarify 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 at the end of the corresponding year$($s$),$ unless specifically stated differently. Their value should be based on the salary in effect at the time the bonuses were 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 inte