Question: Don Draper has signed a contract that will pay him$ 6 5 , 0 0 0 at the end of each year for the next

Don Draper has signed a contract that will pay him$65,000 at the end of each year for the next 8 years, plus an additional $100,000 at the end of year 8. If 7 percent is the appropriate discount rate, what is the present value of this contact?

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