George Penny will receive $28,500 for the next 8 years as a payment for a slogan he coined. Currently a 11 percent discount rate is appropriate. (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)

a-1. Calculate the present value.

Present value $

a-2. Should he be willing to sell his future rights now for $244,000?

multiple choice 1

• Yes

• No

b-1. Calculate the present value if the payments will be made at the beginning of the year.

Present value $

b-2. Should he be willing to sell his future rights now for $244,000, if payments will be made at the beginning of the year?

multiple choice 2

• No

• Yes