You have a deal with a publisher an will receive payments over the next 5 years as follows: $10k, $20k, $30k, $40k, & $50k (from p=1 to p=5). After year five you receive annuity of $85k from the sixth year (p=6) to the fifteenth year (p=15). The discount rate is ten %. What is the contract worth at this moment at p=0?

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Calculation of contract worth at this moment at p 0 Year Cashflow Discounting Factor 10 Present va... View the full answer