Present and Future Values for Cashflows

The signing of big-name athletes is often accompanied by great fanfare, but the numbers are sometimes misleading. Take for example when the New York Mets signed a $91 million contract with Mike Piazza in 1998. It was considered the richest deal in baseball history. That was not bad for someone who makes a living using the “tools of ignorance” (jock jargon for a catcher’s equipment.
However, while Piazza’s contract was reported to date $91 million, it was actually payable over seven years. It consisted of a signing bonus of $7.4 million, ($4 million payable in 1999, $3.5 million in 2002, plus a salary of $83.5 million. The salary was to be distributed as $6 million in 1999, $11 million in 200, $12.5 million in 2001, $9.5 million in 2002, $14.5 in 2003, and $15 million in both 2004 and 2005.
So we recognize that once the time value of money is considered, Piazza did not really get $91 million. Therefore how much did he get?
The tools in chapters 3 and 4 help us answer the question.
Required:
1. Using the link for Sporttrac select an MLB player’s contract based on the instructions provided.
MLB: https://www.spotrac.com/mlb/contracts/

The player that is selected for my research is #18 “Christian Yelich”
2. Using an excel spreadsheet and the proper table or formulas show your calculations for your assigned player. Remember if the breakdown of the contract is not available then you should decide on the breakdown and calculate the values using (present value or future value compute the value of the contract. (30 points)
3. Detailed Discussion
Subtopics 3-6 (30 points, including using APA or intext citations.)
3. Compose an essay analyzing what you computed in the excel spreadsheet
4. Describe the application of present and future values for cashflows
5. Provide a narrative on the differences between a single sum, an ordinary annuity, and an annuity due.
6. Compose a personal conclusion documenting what you learned from the concepts and application in this assignment and baseball contracts.
If you are not sure about the instructions please send me an email for clarification.
All essays must be composed using the format of the Assignment Template in the syllabus and copied below, meaning all parts must be used where the assignment will be graded base on the percentages allocated for the 60 points in the assignment.
STOP and read. Each Written Assignment (Paper) must conform to this template used with the grading rubric for fair grading.
Read before you begin composing your paper. This Template explains the details of your Assignment Submission and grading.
Written paper/case study analysis assignments will be evaluated based on the following scale.
For this assignment, you must incorporate at least two current sources that provide rationale or support for the topic under discussion.
1) Introduction of the case or topic
(2) Facts as presented in the case or topic paraphrased for the report
(3) A summary of the area of related Finance topic.
(4) Your Detailed Discussion of the case or subtopics including the personal conclusion. You must provide a sound rationale for your arguments.
See the Getting Started tab for a link to Perdue Owl
For proper use of APA
Use of proper APA writing style (This means all submissions must adhere to the required in-text citations and a reference list for all submissions 25%).
A case study in-text citations account for 8 %
Current articles (at least 3) account for 12% (see page 4 of syllabus)
Reference list accounts for 5 %
Total 25%
Subtopics (This means that all assignments must have the required subheadings listed below starting with the introduction).
1. Introduction of Topic and Facts as presented in the case (paraphrased 15 points this is not a summary).
The discussion of the case is grounded in the facts as presented therefore you must discuss the core of the case with in-text citations.
2. A summary of the area(s) of Finance (15 points)
This area must conform to Financial Management theory with examples to justify understanding). A financial area is your understanding of a description of the topic area such as Time Value of Money, which states as the main points of the topic of finance.

3. A Detailed Case Discussion
Essay responses to all assigned subtopics in the assignment tab are composed in this section with the respective subtopic. In-text citations included.
Subtopic 1
These are case questions that are to be documented as the subtopic. 7.5 points each.
Subtopic 2
Subtopic 3
Subtopic 4
Personal conclusion to the case
What am I looking for?
You should use the template provided by introducing the player and the team he represents, then discuss the time value of money as the area of finance in the next section with in-text citations from the source. Your detailed discussion is simply answering each question as to the subtopic which must be typed and includes the three articles you researched on the topic, in-text citations must be included, and then provide your personal conclusion.

1. Using the link for Sporttrac select an MLB player’s contract based on the instructions provided.
2. Using an excel spreadsheet and the proper table or formulas show your calculations for your assigned player. Remember if the breakdown of the contract is not available then you should decide on the breakdown and calculate the values using (present value or future value compute the value of the contract. (30 points)
3. Detailed Discussion Subtopics 3-6 (30 points, including using APA for intext citations.)
3. Compose an essay analyzing what you computed in the excel spreadsheet
4. Describe the application of present and future values for cashflows
5. Provide a narrative on the differences between a single sum, an ordinary annuity, and an annuity due.
6. Compose a personal conclusion documenting what you learned from the concepts and application in this assignment and baseball contracts.

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