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A baseball player is offered a 5-year contract that pays him the following amounts: Year...

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Accounting

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A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.3 million Year 2: $1.6 million Year 3: $1.9 million Year 4: $1.1 million Year 5: $2.6 million Under the terms of the agreement all payments are made at the end of each year, Instead of accepting the contract, the baseball player asks his agent to negotiate a contract that has a present value of $3 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 6. year annuity due. All cash flows are discounted at 12.7 percent. If the team were to agree to the player's terms, what would be the player's annual salary in millions

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