Question: (Present value of a complex stream) Don Draper has signed a contract that will pay him $70,000 at the end of each year for the

(Present value of a complex stream) Don Draper has signed a

(Present value of a complex stream) Don Draper has signed a contract that will pay him $70,000 at the end of each year for the next 5 years, plus an additional $110,000 at the end of year 5. If 7 percent is the appropriate discount rate, what is the present value of this contract? ... a. What is the present value of $70,000 at the end of each year for the next 5 years if the discount rate is 7 percent? $(Round to the nearest cent.) b. What is the present value of $110,000 at the end of year 5 if the discount rate is 7 percent? $(Round to the nearest cent.) c. What is the total present value of this contract? $ (Round to the nearest cent.)

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