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Lee Childs is negotiating a contract to do some work for Haas Corp. over the next five years. Haas proposes to pay Lee $10,000 at
Lee Childs is negotiating a contract to do some work for Haas Corp. over the next five years. Haas proposes to pay Lee $10,000 at the end of each of the third, fourth and fifth years. No payments will be received prior to that time. If Lee discounts these payments at 8%, what is the contract worth to him today
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
