am. 118. The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each personsigns independent contracts with the following terms:Contract TermsContractAmountPaymentDateDerekIsabel$460,0002 years500,0003 yearsMeredith395,000TodayGeorge360,0001 yearRequired:1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount.1-b. Which of the four actors is actually being paid the most?Complete this question by entering your answers in the tabs below.Req 1AReq 18Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of$1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.)DerekIsabelMeredithGeorgePresent Value

Present value is the formula which is used for determining the current value of an amount to be…

Answered: The four actors below have just signed…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4P

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