Question
Jodie's Fashions has just signed a $2.25 million contract. The contract calls for a payment of $0.65 million today, $0.8 million one year from today,
Jodie's Fashions has just signed a $2.25 million contract. The contract calls for a payment of $0.65 million today, $0.8 million one year from today, and $0.8 million two years from today. What is this contract worth today if the firm can earn 7.2 percent on its money?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
