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$1 million to be paid in exactly one year, plus 10 years of monthly payments of $5,000, with the first of the monthly payments to
$1 million to be paid in exactly one year, plus 10 years of monthly payments of $5,000, with the first of the monthly payments to be made exactly 18 months from now. If the discount rate embedded in the settlement negotiations was 4.8 percent APR, compounded monthly, what is the present value (i.e., the value as of today) of the settlement agreement?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
