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Carrie Tune will receive $33,000 for the next 18 years as a payment for a new song she has written. Use Appendix D for an
Carrie Tune will receive $33,000 for the next 18 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. What is the present value of these payments if the discount rate is 9 percent?
b. Should she be willing to sell out her future rights now for $210,000?
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