year I earned, the performance and milestone bonuses will be distributed in a single payment at Harry is so excited according to George, the contract is worth $3,392,400-assuming recept of all possible bonussAlter reading the email twice and caling his family, Harry cated you to review the terms of the contract and verify George's calculations. After an extended conversation about what he'll do with his newfound wealth, you and Harry have agreed that any funds received could be invested to cam 7.501, compounded monthly Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and awer the related questions Note: To darily possible sources of coolution and simply your calculations . Assume that al bonuses are cred in each of the years for which they are available and read the end of the responding year(s), unless specifically stated differently. Their value should be based on the salary nettet at the time the ones were earned The endorsement groceeds 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 interest rates are used to discount monthly cash flows. Therefore, it may be necessary to compute the appropriate interest rate that should be used in a sunting calculation Round all dollar amount to the nearest whole dollar and carry out all interest rate factors to four decimal places . When entering intermediate values as answer choices, be sure to round them to the nearest dollar, however when using these are values to calculate another answe do not round Harry Hurter's Contract Evaluation Worksheet D 1 A Assumptions and Calculated Values SAGE MINDTAP ngage Bonus - Time Value of Money Assumptions and Calculated Values Bank Rate Information Harry's Bank Account Rate (compounded monthly Monthly Bank Rate Effective Annual Interest Rate Year 1 Year 2 Year Year 4 Total value 5 S s Salary and Bonus Information: Annual salary (4% COLA) Monthly salary Discount factor (based on Cell 04 above) Discounted Annual Salary 5 $ 5 S 11.5254 10.5960 9.9255 9.2105 2 S 0.9633 $ 0.9280 0.3611 0.7991 0.7415 5 5 0.9280 0.8511 0.799 0.7415 Time-in-League Bonus 4 Discount factor (based on Cell 34 above) Discounted Time-in-League Bonus 25 L7 Milestone Bonus 18 Discount factor (based on Ces above) 19 Discounted Milestone Bonus 20 21 Performance Bonus 22 Discount factor (based on Cell 35 above) 23 Discounted Performance Bonus 24 25 Monthly Endorsement Contract Payment Discount factor (based on Cell 14 above) 27 Discounted Monthly Endorsement Payment 2 29 Contracts Total Nominal Value 30 Contract's Total Discounted Value 5 5 26 11.5264 10.6960 5 year I earned, the performance and milestone bonuses will be distributed in a single payment at Harry is so excited according to George, the contract is worth $3,392,400-assuming recept of all possible bonussAlter reading the email twice and caling his family, Harry cated you to review the terms of the contract and verify George's calculations. After an extended conversation about what he'll do with his newfound wealth, you and Harry have agreed that any funds received could be invested to cam 7.501, compounded monthly Contract Evaluation Worksheet Complete the following worksheet by inserting the appropriate values to evaluate the contract and awer the related questions Note: To darily possible sources of coolution and simply your calculations . Assume that al bonuses are cred in each of the years for which they are available and read the end of the responding year(s), unless specifically stated differently. Their value should be based on the salary nettet at the time the ones were earned The endorsement groceeds 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 interest rates are used to discount monthly cash flows. Therefore, it may be necessary to compute the appropriate interest rate that should be used in a sunting calculation Round all dollar amount to the nearest whole dollar and carry out all interest rate factors to four decimal places . When entering intermediate values as answer choices, be sure to round them to the nearest dollar, however when using these are values to calculate another answe do not round Harry Hurter's Contract Evaluation Worksheet D 1 A Assumptions and Calculated Values SAGE MINDTAP ngage Bonus - Time Value of Money Assumptions and Calculated Values Bank Rate Information Harry's Bank Account Rate (compounded monthly Monthly Bank Rate Effective Annual Interest Rate Year 1 Year 2 Year Year 4 Total value 5 S s Salary and Bonus Information: Annual salary (4% COLA) Monthly salary Discount factor (based on Cell 04 above) Discounted Annual Salary 5 $ 5 S 11.5254 10.5960 9.9255 9.2105 2 S 0.9633 $ 0.9280 0.3611 0.7991 0.7415 5 5 0.9280 0.8511 0.799 0.7415 Time-in-League Bonus 4 Discount factor (based on Cell 34 above) Discounted Time-in-League Bonus 25 L7 Milestone Bonus 18 Discount factor (based on Ces above) 19 Discounted Milestone Bonus 20 21 Performance Bonus 22 Discount factor (based on Cell 35 above) 23 Discounted Performance Bonus 24 25 Monthly Endorsement Contract Payment Discount factor (based on Cell 14 above) 27 Discounted Monthly Endorsement Payment 2 29 Contracts Total Nominal Value 30 Contract's Total Discounted Value 5 5 26 11.5264 10.6960 5