^{The Hazards, a professional baseball team, want to sign pitcher}

question 259

Multiple Choice

^{The Hazards, a professional baseball team, want to sign pitcher Alex McScoob to a two-year contract but, because of salary cap limitations, can only pay $8 million for the first year (Alex's market value is $10 million per year) . The Hazards offer to pay $8 million in year 1 and $13 million in year 2.} Should Alex sign the contract?

• A)Yes, Alex is better off financially regardless of the interest rate.
• B)Yes, if the interest rate is less than 50 percent.
• C)Yes, but only if the team expects to be successful.
• D)Yes, but only if the interest rate is less than 10 percent.

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Definitions:

High Wages

Compensation that is significantly above the average pay rate for a particular job or industry, often reflecting high skill levels, performance, or the critical nature of the job.

Corruption

The use of illegal practices to further one’s business interests.

Illegal Practices

Activities that are prohibited by law and can include a wide range of offenses from fraud to environmental violations.

Business Interests

Refers to the stakes or investments that an individual or company holds in a particular sector or business to gain financial or strategic benefits.