Question: AMC has just signed a contract. The contract requires an initial investment of $5 million, and creates positive cash flows of $2 million one year

AMC has just signed a contract. The contract requires an initial investment of $5 million, and creates positive cash flows of $2 million one year from today, $1.5 million two years from today, and $2.5 million three years from today. What is the value of this contract AMC can earn 9 percent on its money?

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