You are a consultant working for a major league baseball team, and you and your consulting team have determined that in order to get a player high in demand, you will need to buy out a veteran player with a remaining amount of his current annual contract in the amount of $9 million dollars. The veteran player is currently 40 years old. The MLB team will use the current $9 million to acquire two players at $3.8 million annually. You and your team must devise a payout strategy that causes neither the team nor the player harm. Assume a market rate of interest of 12%. Note: There is more than one correct answer. Everyone will be making their own assumptions (such as the length of time the veteran player would continue playing baseball if he wasn’t being bought out),assume the veteran player would play 6 more years.

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The team wouldnt want to give the player the 9 million up front because th... View the full answer