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Business, 08.07.2020 20:01 1dirctn

Near the end of 2005, baseball player A. J. Burnett signed what was reported to be a $55 million contract with the Toronto Blue Jays. It consisted of a $6 million signing bonus, a $1 million salary for 2006, and a $12 million salary for years 2007 through 2010. Did he really get $55 million? Estimate the value of his contract. Since the payoffs are not considered high risk, use a discount rate of 5 percent.

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