1. As of December 31, 2020, your company, Timo Inc., is considering a four-year contract with a client to offer compensation consulting services on a fee basis. You can set up your operation with three of your staff using vacant space in your company's office near the client at no additional rent expense on your building lease. Your expected free cash flow from this service over the term of the contract is expected to be: YEAR FREE CASH FLOW ($ thousands) 2021 $57 2022 $82 2023 $86 2024 $107 You would like to know what this contract is worth now as you consider using the same three staff for other projects or contracts. - Estimate the present value to your company of this contract. The discount rate commensurate of this contract is 11%. The Present Value of $1 Table (Table 3) tells us: Period (n) Present Value Factor at 11% Discount Rate! .901 .812 .731 .659 .593