The Hazards, a Professional Baseball Team, Want to Sign Pitcher

question 332

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:

Sexual Arousal

a physiological response and state of heightened sexual interest and excitement.

X-Rated

A classification for movies, indicating that they are intended for adult audiences only, with explicit sexual content.

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The concentration of the male sex hormone testosterone present in a person's body, which can affect mood, energy, and sexual function.

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Acquired Immune Deficiency Syndrome, a disease caused by the human immunodeficiency virus (HIV) that leads to a weakened immune system.