Question: Don Draper has signed a contract that will pay him $50,000 at the end of each year for the next 10 years, plus an additional

Don Draper has signed a contract that will pay him

$50,000

at the end of each year for the next

10

years, plus an additional

$150,000

at the end of year

10.

If

11

percent is the appropriate discount rate, what is the present value of this contract?

The present value of the contract is

$enter your response here.

(Round to the nearest cent.)

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