(Present value of a complex stream) Don Draper has signed a contract that will pay him $80,000 at the end of each year for the next 6 years, plus an additional $100,000 at the end of year 6. If 8 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 $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.)
- (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.)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.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?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.)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 today
- contract would you prefer? 4. What are the present values of the following cash flows? A. $1,000 to be received in 8 years if the discount rate is 5 percent. B. $35 a year for 7 years compounded annually at 7 percent. C. a $100 perpetuity discounted at 9 percent.Find 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...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?