(Present value of a complex stream) Don Draper has signed a contract that will pay him $60,000 at the end of each year for the next 8 years, plus an additional $110,000 at the end of year 8. If 12 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.)
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- (Present value of a complex stream) Don Draper has signed a contract that will pay him $50,000 at the end of each year for the next 5 years, plus an additional $130,000 at the end of year 5. If 7 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 $60,000 at the end of each year for the next 6 years, plus an additional $120,000 at the end of year 6. 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.) C...(Present value of a complex stream) Don Draper has signed a contract that will pay him $70,000 at the end of each year for the next 5 years, plus an additional $110,000 at the end of year 5. If 9 percent is the appropriate discount rate, what is the present value of this contract? a. What is the present value of $70,000 at the end of each year for the next 5 years if the discount rate is 9 percent? (Round to the nearest cent.)
- Don Draper has signed a contract that will pay him $50,000 at the end of each year for the next 8 years, plus an additional $150,000 at the end of year 8. If 7 percent is the appropriate discount rate, what is the present value of this contract? Question content area bottom Part 1 The present value of the contract is $ enter your response here . (Round to the nearest cent.)(Present value of a complex stream) Don Draper has signed a contract that will pay him $40,000 at the end of each year for the next 8 years, plus an additional $120,000 at the end of year 8. If 8 percent is the appropriate discount rate, what is the present value of this contract? a. What is the present value of $40,000 at the end of each year for the next 8 years if the discount rate is 8 percent? $nothing (Round to the nearest cent.)A contract will pay you $5000 per year every other year for the next 30 years. That is, since today is time 0, the contract will pay you $5000 in year 2, 4, 6. 28, 30. The discount rate is 8% compounded semiannually. What is the present value of this contract?
- TA Corp. has a consulting contract with a firm that states that he will receive annual payments of $50,000 a year for five years with the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent?Peter Lynchpin wants to sell you an investment contract that pays equal $12,600 amounts at the end of each of the next 18 years. If you require an effective annual return of 7 percent on this investment, how much will you pay for the contract today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Value todayFind the present value of a contract that requires yearly payments of 11,832 for 20 years. Money is worth 3.37% for the first eight years and 8.02% for the last 12 years. Solve and explain...
- 1. A contract calls for a lump-sum payment of $15,000. Find the present value of the contract assuming. When making these calculations, you need to use a present value factor that is carried to three decimal places to get the correct answers. a. The payment is due in five years, and the current interest rate is 9 percent. Your answer should contain a dollar sign.b. The payment is due in ten years and the current interest rate is 5 percent. Your answer should contain a dollar sign.c. Between the two calculations, A and B, which option is the best option for the person receiving the payment? State in a full sentence why you chose this option.Live Forever Life Insurace Co. is selling a perpetuity contract that pays $1,000 monthly. The contract sells for $163,000. What is the monthly return on this investment? What is the APR? What is the effective annual return?An insurance company is offering to sell an annuity for $20,000 cash. In return the firm will guarantee to pay the purchaser 20 annual endof-year payments, with the first payment amounting to $1100. Subsequent payments will increase at a uniform 10% rate each year (second payment is $1210; third payment is $1331, etc.). What rate of return would someone who buys the annuity receive?