You just signed a business consulting contract with one of your clients. The client will pay you $45,000 every year for the service you will provide. You anticipate the annual general inflation rate over the following years to be 5%. If the client pays the consulting fee at the end of each year, what is the worth of the fourth payment in constant dollars? A) $40,426.56 B) $54,697.78 C)$37,021.61 D) Answers A, B and C are not correct
You just signed a business consulting contract with one of your clients. The client will pay you $45,000 every year for the service you will provide. You anticipate the annual general inflation rate over the following years to be 5%. If the client pays the consulting fee at the end of each year, what is the worth of the fourth payment in constant dollars? A) $40,426.56 B) $54,697.78 C)$37,021.61 D) Answers A, B and C are not correct
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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You just signed a business consulting contract with one of your clients.
The client will pay you $45,000 every year for the service you will provide. You anticipate the
annual general inflation rate over the following years to be 5%. If the client pays the consulting
fee at the end of each year, what is the worth of the fourth payment in constant dollars?
A) $40,426.56
B) $54,697.78
C)$37,021.61
D) Answers A, B and C are not correct
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