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Time Value of Money

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27. Lee Childs is negotiating a contract to do some work for Hass Corp. over the next five years. Hass proposes to pay Lee $10,000 at the end of each of the third, fourth, and fifth years. No payments will be received prior to that time. If Lee discounts these payments at 8%, what is the contract worth to him today?

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Calculates present value.

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27. Lee Childs is negotiating a contract to do some work for Hass Corp. over the next five years. Hass proposes to pay Lee $10,000 at the end of each of the ...

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