Economics Homework Help

I’m working on a finance question and need an explanation and answer to help me learn.

Xander Bogaerts is the shortstop for the Boston Red Sox. He has been playing for the team in Boston since 2013, and has 2 World Series rings. His contract was due to expire at the end of the 2019 season. Before the season started, Xander and the Red Sox agreed to a contract extension, the details of which can be found at:
https://www.spotrac.com/mlb/boston-red-sox/xander-…
Imagine that you are Xander Bogaerts, and are considering this contract in April 2019. Obviously it gets paid out over several years. However, you know that a dollar today is worth more than a dollar tomorrow, and so you get to work to figure out what the contract is worth today.
This is a present value of an annuity problem, but unlike a book problem, you don’t have all the variables supplied for you. This is a real-life application of your TVM skills! Draw a timeline to keep the information straight – it really helps!
A few considerations – Assume that it is April 1, 2019, and that payments are made on April 1 of each year. Payments begin in 2020; the salary for 2019 was under the old contract, and so not part of this extension – you can ignore the 2019 payment. What interest rate should you use? This will depend partially on the certainty of receiving the payments. Guaranteed payments should carry a lower interest rate than any payments that are not certain and therefore have a greater associated risk. So, you may use different rates for different years. You may consider what rate you might earn on the funds if you were able to invest them, and use that as a starting point. There is no wrong answer here – you all may look at the problem differently – but try to use the right procedure to arrive at your answer.
Length should be no longer than 200 – 250 words. Remember to reply to at least 2 other posts.

Fun fact – Xander Bogaerts can speak 4 languages – what are they? Answer will be in my post.