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 $500,000 2 years Isabel 540,000 3 years Meredith 450,000 Today George 400,000 1 year Required a Assuming an annual discount rate of 10 , calculate the present value Use Table 2 (Do not round PV factors Round your answers to 2 decimal places Omit the $ sign in your response ) Present Value Derek $ Isabel $ Meredith $ George $ b Who is paid the most Isabel George Meredith Derek

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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	$500,000	2 years
Isabel	540,000	3 years
Meredith	450,000	Today
George	400,000	1 year

Required:
a.	Assuming an annual discount rate of 10%, calculate the present value. Use Table 2. (Do not round PV factors. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Present Value
Derek	$
Isabel	$
Meredith	$
George	$

Who is paid the most?

	Isabel
	George
	Meredith
	Derek

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