In 2012, a baseball player signed a contract reported to be worth $63.7 million. The contract was to be paid as $8.7 million in 2012, $10.1 million in 2013, $11.1 million in 2014, $11.2 million in 2015, $11.2 million in 2016, and $11.4 million in 2017. Required: If the appropriate interest rate is 11 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.
Present Value $