Question: 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

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 $ 530,000 2 years
Isabel 570,000 3 years
Meredith 465,000 Today
George 430,000 1 year

Required: 1-a. Assuming an annual discount rate of 10%, 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.)

1-b. Which of the four actors is actually being paid the most? multiple choice

  • Meredith

  • Derek

  • George

  • Isabel

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