The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms: Derek Isabel Meredith George Contract Contract Amount $430,000 470,000 370,000 330,000 Terms Payment Date 2 years 3 years. Today 1 year Required: 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (EV of $1. PV of $1. EVA of $1. and PVA of $1) 1-b. Which of the four actors is actually being paid the most? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Assuming an annual discount rate of 8%, calculate the present value of the contract amount. Note:Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. Present Value

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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The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors.
Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms:
Derek
Isabel
Meredith
George
Contract
Req 1A
Contract
Amount
$430,000
470,000
370,000
330,000
Required:
1-a. Assuming an annual discount rate of 8 %, calculate the present value of the contract amount. (EV of $1. PV of $1. EVA of
$1. and PVA of $1)
1-b. Which of the four actors is actually being paid the most?
Complete this question by entering your answers in the tabs below.
Derek
Terms
Payment
Date
2 years.
3 years.
Today
1 year
Req 18
Assuming an annual discount rate of 8%, calculate the present value of the contract amount.
Note:Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.
Present Value
Transcribed Image Text:The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms: Derek Isabel Meredith George Contract Req 1A Contract Amount $430,000 470,000 370,000 330,000 Required: 1-a. Assuming an annual discount rate of 8 %, calculate the present value of the contract amount. (EV of $1. PV of $1. EVA of $1. and PVA of $1) 1-b. Which of the four actors is actually being paid the most? Complete this question by entering your answers in the tabs below. Derek Terms Payment Date 2 years. 3 years. Today 1 year Req 18 Assuming an annual discount rate of 8%, calculate the present value of the contract amount. Note:Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. Present Value
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