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Don Draper has signed a contract that will pay him $ 7 0 , 0 0 0 at the end of each year for the

Don Draper has signed a contract that will pay him $

70, 000

at the end of each year for the next

10

years

,

plus an additional $

150, 000

at the end of year

10 .

11

percent is the appropriate discount

rate, what is the present value of this

contract?

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