Question: 15q. Present value of a complex stream)Don Draper has signed a contract that will pay him $75,000 at the end of each year for the

15q.

Present value of a complex stream)Don Draper has signed a contract that will pay him

$75,000

at the end of each year for the next

7

years, plus an additional

$110,000

at the end of year

7.

If

9

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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Besserbrau AG is a German beer producer headquartered in Ergersheim, Bavaria. The company, which was founded in 1842 by brothers Hans and Franz Besser, is publicly traded, with shares listed on the...

Q:

5 60 Present value of a complex stream Don Draper has signed a contract that will pay at the end of year 6 If 8 percent is the appropriate discount rate what is the present him 80 000 at the end of...

Q:

1 (Related to Checkpoint 7.1) (Calculating rates of return) On December 5, 2007, the common stock of Google Inc. (GO0G) was trading for $688.51. One year later the shares sold for only $283.99....

Q:

1. (Related to Checkpoint 7.1) (Calculating rates of return) On December 5, 2007, the common stock of Google Inc. (GOOG) was trading for $698.51. One year later the shares sold for only $283.99....

Q:

3. (Calculating rates of return) The common stock of Placo Enterprises had a market price of $10.73 on the day you purchased it just one year ago. During the past year the stock had paid a dividend...

Q:

(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 9 years, plus an additional $130,000 at the end of year 9 . If 8...

Q:

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 7 years, plus an additional $150,000 at the end of year 7. If 8...

Q:

Please answer ALL questions: 2. (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value...

Q:

2. (Calculating rates of return) The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24,...

Q:

(Present value of a complex stream) Don Draper has signed a contract that will pay him $75,000 at the end of each year for the next 5 years, plus an additional $130,000 at the end of year 5. If 8...

Q:

I need help with these questions (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...

Q:

QUESTION 1 LBC manufactures mechanical talkative recorder, which trade under the name Talkative. In the year ended 31 st December 2017, 10,000 Talkatives were manufactured and the related costs were:...

Q:

The CFO of X, a brokerage firm and SEC registrant (the Company), tells you that the Company is contemplating a sale of one of its reporting units, G, a wholly owned subsidiary of the Company located...

Q:

favor resumir Ajuste de los ndices Los ndices suelen ajustarse cuando se producen variaciones en las cotizaciones, que se deben a hechos que no son motivados por las propias fuerzas del mercado....

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".