Question: You just signed a consulting contract that will pay you $25,000, $28,000, and $42,000 at the end of the next three years, respectively. What is

You just signed a consulting contract that will pay you $25,000, $28,000, and $42,000 at the end of the next three years, respectively. What is the present value of this contract given a discount rate of 8.7 percent? $71,257 $79,103 $79,397 $146,006 None of these answers are correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Consider a comparative study in which two methods of teaching sight singing to forth graders is studied. Pre- and post-scores for 18 kids in the control group and 18 kids in the treatment group are...

You just signed a consulting contract that will pay you $27,000, $31,000, and $44,000 at the end of the next three years, respectively. What is the present value of this contract given a discount...

You just signed a consulting contract that will pay you $ 2 7 , 0 0 0 , $ 3 1 , 0 0 0 , and $ 4 4 , 0 0 0 at the end of the next three years, respectively. What is the present value of this contract...

You just signed a consulting contract that will pay you $38,000,$42,000, and $45,000 annually at the end of the next three years, respectively. What is the present value of this contract given a...

You just signed a consulting contract that will pay you $ 3 9 , 0 0 0 , $ 4 2 , 0 0 0 , and $ 4 0 , 0 0 0 at the end of the next three years, respectively. What is the present value of this contract...

You just signed a consulting contract that will pay you $38,000,$42,000, and $45,000 annually at the end of the next three years, respectively. What is the present value of this contract given a...

You just signed a consulting contract that will pay you $ 3 8 , 0 0 0 , $ 5 2 , 0 0 0 , and $ 9 6 , 2 4 2 annually at the end of the next three years, respectively. What is the present value of these...

You just signed a consulting contract that will pay you $27000, $31,000, and $44,000 at the end of the next three years, tespectively. What is the present value of this contract given a discount rate...

You just signed a contract that will pay you $38,000,$42,000, and $45,000 annually at the end of the next three years, respectively. What is the present value of this contract given a discount rate...

Question 17 Yolanda just signed a consulting contract that will pay her R35 000, R52 000 and R80 000 annually at the end of the next three years, respectively. What is the present value of these cash...

1. If the net present value of a project is positive (nonzero), then the project's: A. PI will be less than 1. B. internal rate of return will exceed its required rate of return. C. costs exceed its...

Rachel Co. had opening balances at 01 January 20X0 as follows: Items $ 30000 14000 25000 Non-current assets 90000 Share capital 1$ 80000 Retained earnings 21000 Trade payables 38000 Employees...

Refer to the Problem 6 figure presented in the text, which shows typical expenditure cycle files and attributes. Explain, in detail, the process by which these data are obtained and used in the...

Example: The auditor notes a significant increase in xx account ( yy % ) while zz account remain relatively constant ( yy % ) . One reason we see this change is that . . . . . Further investigation...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

(Appendices) Megan, age 24, recently graduated from college. She was insured as a dependent under her fathers group health insurance policy, which provided coverage for her as a student until she...

(Appendices) The Social Security trust funds are invested in government securities that are both similar and dissimilar to other government securities available to the Public. LO4 a. Explain how the...

(Appendices) Ethics Some celebrities lend their names to products that later turn out to be ineffective or harmful to consumers. The celebrities are paid to endorse the product by claiming they have...