Question: Don Draper has signed a contract that will pay him $75,000 at the end of each year for the next 8 years, plus an additional

Don Draper has signed a contract that will pay him $75,000 at the end of each year for the next 8 years, plus an additional $120,000 at the end of year 8.

If 9 percent is the appropriate discount rate, what is the present value of this contract?

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