The ZLC consulting firm just signed an agreement to provide services to another firm. In doing so, ZLC will receive $100,000 today, and then annual payments of $70,000 per year for 5 years, with first annual payment starting one year from today. What is the present value of this agreement if the appropriate discount rate is 8.50% compounded annually?

The ZLC consulting firm just signed an agreement to provide services to another firm. In doing so, ZLC will receive $100,000 today, and then annual payments of $70,000 per year for 5 years, with first annual payment starting one year from today. What is the present value of this agreement if the appropriate discount rate is 8.50% compounded annually?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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