Don Draper has signed a contract that will pay him $60,000 at the beginning of each year for the next 5 years, plus an additional $120,000 at the end of year 5 . If 7 percent is the appropriate discount rate, what is the present value of this contract?

a. What is the present value of $60,000 at the beginning of each year for the next 5 years if the discount rate is 7 percent?