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Krystyna has a long-term consulting contract with an insurance company that guarantees her $26000 per year for five years. She believes inflation will be 3 percent this year and 5 percent next year, and then will stay at 10 percent indefinitely. Krystyna's real MARR is 10 percent. What is the present worth of this contract? Select one: 63016 126033 84022 SKIP O 168044 none of the given answers

Krystyna has a long-term consulting contract with an insurance company that guarantees her $26000 per year for five years. She believes inflation will be 3 percent this year and 5 percent next year, and then will stay at 10 percent indefinitely. Krystyna's real MARR is 10 percent. What is the present worth of this contract? Select one: 63016 126033 84022 SKIP O 168044 none of the given answers

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Krystyna has a long-term consulting contract with an insurance company that guarantees her $26000 per year for five years. She believes inflation will be 3 percent this year and 5 percent next year, and then will stay at 10 percent indefinitely. Krystyna's real MARR is 10 percent. What is the present worth of this contract? Select one: 63016 126033 84022 SKIP O 168044 none of the given answers
Transcribed Image Text:Krystyna has a long-term consulting contract with an insurance company that guarantees her $26000 per year for five years. She believes inflation will be 3 percent this year and 5 percent next year, and then will stay at 10 percent indefinitely. Krystyna's real MARR is 10 percent. What is the present worth of this contract? Select one: 63016 126033 84022 SKIP O 168044 none of the given answers
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