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

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Finance

A baseball player is offered a 5-year contract that pays him the following amounts:
Year 1: $1.08 million
Year 2: $1.67 million
Year 3: $2.41 million
Year 4: $2.80 million
Year 5: $3.08 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 $1.92 million more than that which has
beerroffered. Moreover, the player wants to receive his payments in the form of a 5-year ANNUITY DUE. All cash flows
are discounted at 10.00 percent. If the team were to agree to the player's terms, what would be the player's annual
salary (in millions of dollars)?(Express answer in millions. $1,000,000 would be 1.00)
Answer format: Currency: Round to: 4 decimal places.
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