Question: contract terms Contract Amount Payment Date derek $410,000 2 years isabel 450,000 3 years Meredith 345,000 today George 310,000 1 year The four actors below
| contract terms | |||
|
|
| derek | $410,000 | 2 years | |
| isabel |
| 3 years | |
| 345,000 | today | |
| George | 310,000 | 1 year |
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek $410,000 2 years Isabel 450,000 3 years Meredith 345,000 Today George 310,000 1 year
Required: 1-a. Assuming an annual discount rate of 9%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.
| present value | |
| Derek | |
| Isabel | |
| Meredith | |
| George |
1-b. Which of the four actors is actually being paid the most
option 1 or option 2.
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