A five-year contract pays at the end of each year:Year 1: $2…
A five-year contract pays at the end of each year:Year 1: $27.8M, Year 2: $29.6M, Year 3: $31.4M, Year 4: $33.3M, Year 5: $35.2M.The discount rate is 8% per year. The contract’s present value today is closest to: (Hint: using the CF function of the financial calculator)
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