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Carrle Tune will recelve $19,000 a year for the next 20 years as payment for a song she has just witten. If a present 9
Carrle Tune will recelve $19,000 a year for the next 20 years as payment for a song she has just witten. If a present 9 percent discount rate is applied: (Use o Finoncial calculotor to arrive ot the onswers, Round the final onswers to the nearest whole dollar.) a-1. Calculate the present value. Present value $ a-2. Should she be willing to sell out her future rights now for $166,000 ? No Yes b-1. Calculate the present value if the payments will be made at the beginning of each year Present value $ b-2. Would she be willing to sell her future rights now for $166,0000, if the payments will be made at the beginning of each year? Yes No
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