Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 16 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present value b. Should she be willing to sell out her future rights now for $202,000? Yes O No

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written. Use Appendix D for an
approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. What is the present value of these payments if the discount rate is 16 percent?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Present value
b. Should she be willing to sell out her future rights now for $202,000?
Yes
O No
Transcribed Image Text:Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 16 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present value b. Should she be willing to sell out her future rights now for $202,000? Yes O No
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