The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Payment Amount Derek Isabel $460,000 Date 2 years 500,000 3 years Meredith 395,000 George 360,000 Today 1 year Required: 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 1A Req 1B Assuming 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.) Derek Isabel Meredith George Present Value < Req 1A Req 1B >
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Payment Amount Derek Isabel $460,000 Date 2 years 500,000 3 years Meredith 395,000 George 360,000 Today 1 year Required: 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 1A Req 1B Assuming 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.) Derek Isabel Meredith George Present Value < Req 1A Req 1B >
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4P
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