(Present value of a complex stream) Don Draper has signed a contract that will pay him $55,000 at the end of each year for the next 5 years, plus an additional $150,000 at the end of year 5. If 9 percent is the appropriate discount rate, what is the present value of this contract? The present value of the contract is $. (Round to the nearest cent.)
(Present value of a complex stream) Don Draper has signed a contract that will pay him $55,000 at the end of each year for the next 5 years, plus an additional $150,000 at the end of year 5. If 9 percent is the appropriate discount rate, what is the present value of this contract? The present value of the contract is $. (Round to the nearest cent.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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