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Jodie's fashions has just signed a $3 million contract. The contract calls for a payment of $0.6 million today, $0.8 million one year from today,
Jodie's fashions has just signed a $3 million contract. The contract calls for a payment of $0.6 million today, $0.8 million one year from today, $0.8 million two years from today, no payments for two years after that, and then $0.8 million five years from that. What is this contract worth today if the firm can earn 8 percent on its money?
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