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Lee Child is negotiating a contract to do some works for Haas Corp. over the next...

Lee Child is negotiating a contract to do some works for Haas Corp. over the next five years. Haas proposes to pay Lee$10,000 at the end of the third, fourth, and fifth years. No payments will be received prior to that time. If Lee discounts these payments at 8%, what is the contract worth to him today?

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Answer #1


Present Value = $22,094.45

Present Value of Contract = $22,094.45

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